Ethereum (ETH) is going through a wave of doubt in the unstable world of cryptocurrencies. There are signs of a downward trend, important ideas from Vitalik Buterin, co-founder of the company, and legal problems from the Securities and Exchange Commission (SEC).
Buterin’s most recent contribution to Ethereum’s growth is Ethereum Improvement Proposal (EIP) 7706, a new gas fee structure that will make transactions that use a lot of data economical. There is a new type of gas added to this plan that is made to work with call data.
This might bring down prices and improve the experience for users. Buterin’s plan to make gas fees work the same way everywhere shows that ETH is still open to new ideas and wants to improve things.
Ethereum’s Regulatory Dilemma
Ethereum’s growth potential is trumped by the fact that regulators don’t know what will happen with Van Ecks’ spot ETH ETF application. As the date of May 23 draws near, more and more people are wondering what the SEC will do about Ethereum being considered a security.
Bloomberg analysts say that the chances of a spot ETH ETF approval are decreasing because they are worried about Ethereum’s regulatory situation. Some experts think the SEC might not actually label ETH as a security, while others think that a move like that might have political effects.
In light of these events, Ethereum’s market performance shows that traders are being careful. Even though it’s been trading around $2,900, new data points to a short-term bearish view. Long liquidations worth a total of $24.22 million in just 24 hours, along with a 1.8% drop in open interest, back up what people already think, especially about the SEC’s upcoming decision.
Despite this, ETH is strong, and the $2,852 support level has been staying put for months. Price changes or stays the same are what analysts think. The next price rise will try to go over $3,161 as a limit.For Ethereum, things are rough because it has to deal with both changes inside the company and legal issues from outside the company.
It looks like Buterin’s ideas will lead to new things, but it’s hard to say what ETH will do in the short term until the SEC makes its ruling. Long-term users may still think the price is good because they think ETH will be strong and have room to grow, even though the regulator isn’t sure what will happen.
