The world’s second-biggest cryptocurrency, Ethereum’s ETH, seems to be struggling in the month of March 2024. However, historical data shows that the second quarter is typically bullish for Ethereum. Yet, numerous factors could affect Ethereum’s price this time, including the potential approval of a spot Ethereum ETF and the upcoming Bitcoin Halving.
Will the Ethereum price soar this Q2?
There is a high probability that Ethereum’s price, along with Bitcoin, will experience massive upside momentum after the halving event. Apart from these events, technical analysis can provide an overview of price momentum.
According to expert technical analysis, Ethereum, on a weekly timeframe, is consolidating in a tight range between $3,430 and $3,880. If Ethereum’s weekly candle closes above the $3,880 level, there is a high probability that, in the coming days following the Bitcoin halving event, we may see ETH price reach the $4,800 level.
SEC’s views on spot Ethereum ETF
Alternatively, if ETH’s weekly candle closes below the $3,300 level, there might be a possibility that the price of ETH may hit the $3,000 level. Currently, looking at Ethereum’s price performance, it seems less likely to be impacted by an ETH ETF delay decision.
Moreover, the eagerly awaited Ethereum ETF might face delays and may not get approval this quarter. However, on March 11, 2024, Todayq News reported that Ethereum ETF approval may miss the May 2024 deadline, and based on the current situation, it may also miss approval in Q2. The reasons behind this ETF delay are as follows: the SEC isn’t engaging much with the people pushing for an ETH ETF, and it seems like they aren’t really listing or participating, unlike with Bitcoin ETF discussions.
Another reason for the potential delay in the ETH ETF is that the head of the SEC, Gary Gensler, doesn’t show interest. While he may have allowed Bitcoin ETFs as a compromise, he’s not as open to Ethereum this time. Additionally, Senator Elizabeth Warren and others who aren’t fans of cryptocurrency are putting pressure on the SEC not to approve an ETH ETF, making it harder for it to happen. However, all these reasons are cited in a Fox Business report.
Previously, the SEC raised questions about Ethereum’s Proof of Stake (PoS) consensus mechanism and concentration of control, fearing vulnerability to fraudulent activities. In response, Ethereum advocates highlighted Ethereum’s superior security measures compared to Bitcoin’s Proof of Work (PoW) model, which has been the basis for approved Bitcoin ETFs. However, considering the current situation, it looks like getting ETH ETF approval this quarter will be very difficult.
