The upcoming final decision on the spot Ethereum ETF in the United States has further caused short-term fear in the altcoin industry.
Ethereum (ETH) price closed last week trading at $2,928, down around 6.6 percent. As a result, Ethereum price is hovering around precarious levels that could either yield a heavy bloodbath or a general-wide altcoin rebound in the near term. For the past two months, Ethereum, as with the rest of the crypto industry, has been trapped in a correction mode, thus forming a descending triangle with a robust base of around $2,889.
Ethereum Leads Altcoin Industry in Bleeding to Bitcoin
As the altcoin industry continues to experience heightened volatility and increased downside risks, more investors are taking refuge in Bitcoin (BTC) and the stablecoin market. According to the latest crypto market data, Bitcoin price gained nearly 2 percent in the past 24 hours to trade around $62,439 at the time of this writing.
According to a popular crypto analyst Benjamin Cowen, the founder of IntoTheCryptoverse, Ethereum price will continue bleeding to Bitcoin until the Federal Reserve initiates anticipated interest rate cuts. As Coinspeaker previously reported, the US Federal Reserve will most likely begin its anticipated rate cuts at least June as the inflation figures continue to cool down.
Go read the comments in the quoted tweet below from January.
Basically no one believing that #ETH / #BTC would keep on fading and laughing at the idea presented.
WHERE ARE THEY NOW?
Probably calling the bottom on ETH/BTC again. https://t.co/4ySS6XiNxz pic.twitter.com/nkmW9ryo6h
— Benjamin Cowen (@intocryptoverse) May 13, 2024
From a technical standpoint, Bitcoin dominance has continued to show strength to rise in the near term if the current sentiments hold. Furthermore, Bitcoin dominance has been forming higher highs and higher lows in the past year, with Bitcoin price already having set a new all-time high.
Nonetheless, the weekly chart on Bitcoin dominance has been showing an inevitable reversal backed by a bearish divergence on the Relative Strength Index (RSI).
What’s at Stake?
The cryptocurrency industry is currently in a major transition period to mass adoption, triggered by heightened demand from institutional investors and increased regulatory clarity. Moreover, there is a huge demand to tokenize real-world assets on blockchains to reach more global markets.
However, the continued rise of the altcoin industry has posed existential threats to governments and the traditional banking sector. As a result, the Securities and Exchange Commission (SEC) has continued to push for Ethereum to be regulated under security laws and not a commodity like Bitcoin, Gold, or crude oil.
As Coinspeaker pointed out, the US SEC is likely to reject the spot Ether ETFs later this month. Moreover, the US SEC has already been sued by Consensys for its deliberate attempt to classify Ethereum as a security.
Mid-term Price Targets
Ethereum bulls must defend the current support level in the coming weeks to avoid a possible bloodbath in the altcoin space. From a technical standpoint, Ether’s price against the US dollar must consistently close above $3,360 and the daily 50 Moving Average (MA).
Otherwise, Ether’s price could fall as much as $2,351, which coincides with the daily 1.618 Fibonacci Extension.
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