Ethereum remains under immense selling pressure, shaving over 30% from March 2024 highs. With prices recently dropping below $3,000 and sellers doubling down, there could be no reprieve for optimistic buyers in the sessions to come. 

Analyst Expects One More “Washout” To $2,700

Taking to X, one analyst notes that the coin is still bearish and moving inside a falling wedge. The trader predicts that ETH will continue dropping below immediate support levels. 

In a post, the trader predicts a potential “washout” for ETH that would likely see the coin fall below $2,700. The analyst added that despite the prevailing fear, the overall structure of Ethereum price action remains unchanged. 

The Ethereum candlestick arrangement in the daily chart shows that Ethereum prices are within a bearish breakout formation. Following the sharp losses in mid-April, buyers have yet to unwind losses. 

Accordingly, unless there is no strong push above $3,300 and the descending wedge, the odds of sellers further pressing on remain high. In the current formation, Ethereum has strong support at $2,800. If there is a “washout,” as the analyst says, ETH may fall below $2,700 towards $2,600 and $2,200, two of the immediate support levels.

Prospects Of Spot Ethereum ETFs Dimming

Adding fuel to the bearish fire are growing odds that the United States Securities and Exchange Commission (SEC) might reject the approval of spot Ethereum exchange-traded funds (ETFs) this month. This speculation stems from analysts pointing to the commission potentially classifying Ethereum as a security, derailing ETF approval.

A finance lawyer on X confirmed that the United States SEC is considering classifying ETH as a security in their upcoming spot ETF decisions. Unlike Bitcoin, whose spot and futures ETFs were approved without such scrutiny, ETH faces this additional hurdle. 

Should the Gary Gensler-led commission deem ETH security, dire consequences would exist. While all spot ETF applications could be denied, there would be more. As part of Grayscale’s Ethereum trusts, ETHE, terms and conditions, if the United States SEC classifies ETH as a security, all ETHE will be liquidated, and the trust closed. 

In late April, Consensys, led by Ethereum’s co-founder Joseph Lubin, said they are suing the United States SEC to protect the broader crypto ecosystem. By threatening to classify ETH as a security, ConsenSys said the regulator “would jeopardize the United States’ ability to use Ethereum and similar blockchain technology.”

Feature image from Canva, chart from TradingView