Ethereum remains under tremendous selling pressure, particularly in contrast to Bitcoin's strength. As a popular chartist noted on X, Ethereum remains bearish short-term against the dollar and is trading within a falling wedge pattern.

(X post)

Unless Ethereum makes a strong move, breaking above $3,300 and the descending wedge, the likelihood of continued selling pressure remains high. Currently, Ethereum has strong technical support at $2,800. In case of a "washout," the analyst suggests that ETH may fall below $2,700, with further support at $2,600 and $2,200.

Contributing to the cautious outlook are increasing concerns that the United States Securities and Exchange Commission (SEC) might reject the approval of spot Ethereum exchange-traded funds (ETFs) this month. Analysts speculate that the SEC might classify Ethereum as a security, hindering ETF approval.

– an author and finance lawyer have noted in X post

If the commission deems ETH security, severe consequences should be expected: all spot ETF applications would be denied, but not just that. According to the terms of Grayscale’s Ethereum Trust (ETHE) (PDF), if ETH is classified as a security, the ETHE will be liquidated and the trust closed.

(X post)

Since the SEC approved spot Bitcoin ETFs in January, hopes for similar approval of spot ETH ETFs have plummeted. On the blockchain-based prediction platform Polymarket, traders currently see only an 11% chance of ETH ETFs being approved this month.

Even though SEC Chair Gary Gensler has affirmed that Bitcoin is a commodity, he has not yet provided clear statements on Ethereum's regulatory status, consistently refusing to answer the question.

(X post)

Approved or not, multiple industry watchers previously stated the SEC would almost definitely not allow ether products that involve staking their holdings.

Last month, ConsenSys, led by Ethereum co-founder Joseph Lubin, announced a lawsuit against the SEC to protect the broader crypto ecosystem. ConsenSys argues that classifying ETH as a security "would jeopardize the United States’ ability to utilize Ethereum and similar blockchain technologies."

senior Bloomberg ETF analyst on X

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