• Van Eck's CEO says Ethereum ETFs are less likely to be approved in May because the SEC has remained silent.
  • Following the crypto market correction, Ethereum is down 3.8% as ETH's long liquidations have topped Bitcoin's.
  • EigenLayer's launch on Ethereum Mainnet could add momentum to DeFi's liquid restaking boom.

Ethereum (ETH) is expected to see a price increase in the coming weeks, considering the upcoming Bitcoin (BTC) halving and a potential spot ETH approval. However, on Tuesday, Jan Van Eck, CEO of investment firm Van Eck, stated that the Securities & Exchange Commission's (SEC) silence already indicates a negative outcome as the May 23 deadline for a decision approaches.

Read more: Ethereum could be set for growth as Vitalik Butein shares update on its future

Daily digest market movers: Ethereum ETF approval, low transaction fees, restaking boom

In the wake of a rally that saw ETH tagging $3,730, a general market correction has forced the largest altcoin back to a previous consolidation range formed in March. Here are the recent ETH market movers:

  • Jan Van Eck, CEO of investment firm Van Eck, has said that the SEC's approval of a spot Ethereum ETF by the May deadline is unlikely as the regulator has yet to respond to filings. "We've filed our S1, and we haven't heard anything. So that's kind of a sign. It won't happen without getting the disclosure documents in order," he said to CoinDesk. The SEC faces a May 23 deadline to decide whether or not to approve Van Eck's spot Ethereum ETF filing.

    Unlike Bitcoin ETF applications, which the SEC commented on and engaged institutions about before approval in January, the SEC hasn't commented on Ethereum ETF filings. As a result, other analysts like Bloomberg's Eric Balchunas and James Seyffart have also expressed similar sentiments to Jan's, lowering their odds of an ETH ETF approval in May to 25%. However, Grayscale's chief legal officer, Craig Salm, has previously stated that silence from the SEC doesn't hurt Ethereum's chances of approval.

Also read: Ethereum's price recovery looks imminent as ETF approval sees a glimmer hope

  • While Ethereum ETFs have grabbed most of the headlines, Jan told CoinDesk that reduced transaction costs via Layer 2s and the Solana network is the most important story in crypto that people don't often talk about. He mentioned how these networks can scale, improve adoption, and keep costs predictable. Ethereum Layer 2s have enjoyed low fees since the Dencun upgrade on March 13.
     
  • Following Jan's comment, restaking protocol, EigenLayer went live on the Ethereum Mainnet on Tuesday after accumulating $13.56 billion in total value locked (TVL) since its launch. With its Mainnet launch, Ethereum may experience increased restaking activity in addition to the boom of liquid restaking tokens already making waves on its blockchain. EigenLayer also launched the EigenDA, an actively validated service that aims to address Ethereum's data availability problems by "ushering in an era of cost-effective scalability."

Technical analysis: Ethereum could test the $3,406 support

Ethereum's price resumed a consolidating move on Wednesday after a bearish move that saw it shed nearly 4% of its value in the past 24 hours. The move indicates liquidity is still being collected after the bullish spike on Monday.

Read more: Ethereum on course to post weekly losses as debate over security status continues

While Ethereum's price movement mimics that of the general crypto market - as many altcoins have also been consolidating - its long traders have been affected the most by the market correction. ETH long liquidations crossed $60 million on Wednesday, higher than that of Bitcoin long traders despite lesser volume, according to data from Coinglass. As a result, long traders may exercise more caution while leaving room for bears to prevail.

ETH/USDT 1-hour chart

ETH/USDT 1-hour chart

If this happens, ETH will likely break the $3,406 support. At the time of writing, Ethereum is trading at $3,483.

Ethereum development FAQs

After the Merge, the Ethereum community is looking at the Sharding upgrade next, which has been slated for sometime later in the year. The development can be summarized in four words, “scalability through more efficient data storage.” The software update will increase the capacity of the blockchain, widening the amount of data that can be stored or accessed. At the same time, all services running atop the Ethereum blockchain will enjoy significantly reduced transaction fees.

A fork is the splitting of a blockchain after developers agree and proceed to implement upgrades. The decision comes after these developers reach a consensus for a software upgrade. The ensuing part will see one part continue with the status as is, while the other one will proceed with new features combined with the former ones. A hard fork basically entails permanent divergence of a new side chain from the original one, while a soft fork is doing the same, only difference being that it is temporary.

EIP-4844 is an improvement proposal for the Ethereum network. The upgrade promises reduced gas fees, which is a valuable offering considering the high transaction cost that continues to daunt crypto players. It has been a long-standing concern for the Ethereum network. The proposal is also referred to as “proto-Danksharding,” with an unmatched ability to increase the speed of transactions on the Ethereum blockchain. At the same time, it helps to reduce the transaction cost as everything becomes decentralized.

Gas token is a new, innovative Ethereum contract where users can tokenize gas on the Ethereum network. This means they can store gas when it is cheap and start to deploy the gas once the market has shifted to the north. The use of Gas token helps to subsidize high gas prices on transactions, meaning investors can do everything from arbitraging decentralized exchanges to buying into initial coin offerings (ICOs) early.

 


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Join Telegram

Recommended content


Recommended Content

Editors’ Picks

Solana and XRP ETFs may be on the cards in 2025, Standard Chartered analyst says

Solana and XRP ETFs may be on the cards in 2025, Standard Chartered analyst says

Ethereum Exchange Traded Fund approval news has renewed optimism on Solana and XRP ETFs approval in 2025. Analysts at Standard Chartered believe more cryptocurrency ETFs may be approved next year, and these assets will not be classified as securities. 

More Solana News

Uniswap Price Forecast: UNI could be poised for 30% rally after month-long lull

Uniswap Price Forecast: UNI could be poised for 30% rally after month-long lull

Uniswap price has broken out of a 35-day consolidation this week, a sign of a possible rally ahead that could increase the token’s price around 30%. Technical indicators support the bullish thesis, while on-chain data also aligns with it.

More Uniswap News

Dogecoin inspiration Kabosu dies, leaving legacy of $22.86 billion market cap meme coin behind

Dogecoin inspiration Kabosu dies, leaving legacy of $22.86 billion market cap meme coin behind

Kabosu, the popular Shiba Inu dog that inspired the logo of the largest meme coin by market capitalization, Dogecoin, died early on Friday after losing her fight to leukemia and liver disease. Kabosu had gained popularity as the dog behind the viral “doge” meme. 

More Dogecoin News

XRP climbs past $0.53, SEC Chair Gensler says the agency has done very well in court cases

XRP climbs past $0.53, SEC Chair Gensler says the agency has done very well in court cases

Ripple lawsuit ruling is expected soon, following the new US crypto bill, FIT21. SEC Chair Gary Gensler says the agency has fared well in legal battles while speaking at the ICI 2024 Leadership Summit. 

More Ripple News

Bitcoin: BTC struggles, but $80K is at striking distance Premium

Bitcoin: BTC struggles, but $80K is at striking distance

Bitcoin (BTC) price is in a good position to resume the bull rally despite the recent struggle. Optimism will restart if BTC overcomes a critical hurdle and flips it into a foothold. In such a case, the pioneer crypto will be slated to push to a new all-time high (ATH). 

Read full analysis

BTC

ETH

XRP