Ethereum has become the focal point of discussion within the cryptocurrency community, with traders closely following reports speculating on the SEC’s intentions to reject spot Ethereum ETF proposals in May. 

This development comes after the approval of spot Bitcoin ETFs on January 11, 2024, and the much-anticipated Bitcoin halving event on April 19, 2024, which drove significant optimism and excitement in the crypto market.

#Ethereum is the top trending topic in #cryptocurrency, as traders are discussing the latest reports regarding the #SEC‘s alleged plans to reject the proposals for spot #EthereumETF‘s in May. Much of the community attributes the major rise in #crypto, beginning all the way… pic.twitter.com/kxbcES6ohw

— Santiment (@santimentfeed) April 26, 2024

The aftermath of these events has prompted traders to look toward positive news for other top-cap assets to sustain the ongoing rally.

The potential availability of spot ETFs for Ethereum could hold substantial implications for the second-largest cryptocurrency and other altcoins, especially after Bitcoin dominated much of the market during the October to March bull cycle.

However, current indications suggest that the SEC may not be ready to greenlight additional assets at this time, leading to growing apprehension among traders. Despite this uncertainty, a rise in FUD (fear, uncertainty, and doubt) fueled by trader impatience could ironically benefit non-Bitcoin assets.

Bearish Sentiment Grows Among Investors And Traders Despite Massive ETH Purchase 

Recent weeks have seen a surge in bearish sentiment as many assets retraced significantly from their all-time highs set on April 14th. As a result, the probability of relief bounces in the coming week appears higher than usual.

Traders holding Ethereum or considering investment should brace themselves for potential volatility, as minor updates leading up to the SEC’s decision in May could sway market sentiment. 

While a softened stance from the SEC and a surprise approval could initially boost Ethereum’s value, there’s a possibility of a mid-term drop fueled by FOMO-driven trading activity.

James Fickel, founder of Amaranth Foundation, just spent 24.7M $USDC to buy 7,814 $ETH at ~$3,161 in the past 40 minutes.

The giant currently supplies 128,516 $ETH ($404M) and 40.97M $USDC to #Aave and borrows 2,266 $WBTC ($146M), appearing to have been going long the ETH/BTC… pic.twitter.com/rClXmuTMLK

— Spot On Chain (@spotonchain) April 26, 2024

In the midst of this uncertainty, James Fickel, founder of Amaranth Foundation, has made a significant investment, spending $24.7 million USDC to purchase 7,814 ETH at an average price of $3,161 in the past few hours. Fickel’s actions suggest a bullish outlook on the ETH/BTC trading pair since December 2023, with substantial holdings and borrowing activity on platforms like Aave.

Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.

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Filed under: Bitcoin - @ April 27, 2024 5:09 am