• At the time of writing ETH is trading at $2212, down 0.54% in the last 24 hours.
  • If the price manages to go below $2171 level, then it will likely test $2028 support level.

The U.S. Securities and Exchange Commission has delayed Grayscale Investments’ application to convert its Ethereum trust product (ETHE) into an ETF. Similar action had been taken the day before by the regulatory authority in response to BlackRock’s application for a spot ETH ETF. On January 25, the SEC delayed a decision on BlackRock’s spot Ethereum ETF until March.

The recent remarks made by SEC Commissioner Hester Peirce have added fuel to the speculation, suggesting that the regulatory landscape for ETH and other cryptocurrencies may undergo a change. The Commissioner brought attention to the fact that the cryptocurrency futures and spot markets are highly correlated, which may impact the way the SEC makes its decisions.

Peirce noted that the SEC’s approach to authorizing these products is not necessarily contingent on whether or not the underlying asset is a security, even though the SEC has lately delayed many Ethereum ETF applications.

In anticipation of starting to repay creditors in liquid crypto by mid-February, the insolvent crypto lending company Celsius has allegedly transferred 459,561 ETH, or around $1.014 billion to crypto exchanges. Thus adding more selling pressure on ETH.

Consolidation Phase

Ethereum has been facing severe selling pressure for quite some time now. At the time of writing ETH is trading at $2212, down 0.54% in the last 24 hours as per data from CoinMarketCap. Moreover, the trading volume is up 4.24%. 

The price has been consolidating lately after finding support at $2172 level, waiting to breakout in either direction. If the price manages to go below $2171 level, then it will likely decline further to test $2028 support level. However, if the price climbs above $2258 level, then it will likely test $2350 resistance level.