Sell pressure for ETH saw a surge after SEC Chair Gensler’s inability to provide a clear answer regarding the nature of ETH. There are concerns that ETH’s cooldown could lead to further downside potential.
The cryptocurrency market has been on a wild mid-week rollercoaster ride, affecting not only the king of the altcoins, but also its siblings. Ethereum [ETH] has been dealt another blow, resulting in a dip below the $2,000 price range.
In a surprising and unexpected turn of events, Ethereum’s native cryptocurrency ETH experienced a mid-week pivot that caused it to drop below the highly coveted price target it had recently achieved. The reason behind this bearish outcome reverberated across the altcoin landscape, and it has been linked to ETH’s price action.
Investors are now carefully analyzing the situation and evaluating the impact of SEC Chair Gensler’s inability to provide a solid answer on the nature of ETH. As the market continues to shift, there are concerns that ETH’s cooldown could lead to further downside potential.
Gary Gensler sends the crypto market into a bearish frenzy
ETH’s sell pressure kicked off after the U.S. SEC chairman Gary Gensler’s grilling during a congressional hearing. He failed to provide a clear answer when asked whether Ethereum is a security or commodity and even tried to dance around the question.
Gensler’s antics are likely the reason for the bearish outcome which affected ETH and most of the top altcoins. This is because failing to offer a clear answer triggered some concerns and FUD among crypto holders. The lack of clarity means the U.S. regulator does not have clear guidelines as far as crypto regulations are concerned. They might as well decide the fate of crypto with a coin toss, a situation that would likely be negative for the market.
ETH pulled back by over 5% on 19 April, to its $1,976 price tag which represented a sizable pullback. What makes this decline so noteworthy is that it undermines the bullish efforts that led to an eventual reclaim of the $2000 price level.
The last time that ETH traded at the current price level was in August 2022. Only for a sharp bearish outcome to wipe off that coveted price level.
Source: TradingView
So, should ETH investors anticipate more downside? According to ETH’s supply distribution, most, if not all of ETH’s sell pressure has been building up for the last three days.
Furthermore, it has been coming from addresses holding between 100,000 and 1 million have been the biggest bearish proponents.
Source: Santiment
Most of the other whale categories have contributed to bullish momentum and most other top addresses have been buying in the last 24 hours. This outcome may indicate that the market was witnessing some demand, especially after the recent discount.
The cryptocurrency market has been on a wild ride lately, with some assets experiencing bearish outcomes while others have been bullish. Despite these fluctuations, it seems that most of the other whale categories have been contributing to the current bullish momentum.
Moreover, the latest data indicates that a majority of the top addresses have been buying in the past 24 hours. This could be an indication that the market was witnessing some demand, especially after the recent discount. Such sudden market movements can be puzzling for investors, but they also provide an opportunity for those willing to take risks.
It remains to be seen how the market will perform in the coming days, but the bullish activity of these whale categories and top addresses offers some hope for investors. While there may still be some uncertainty, the data suggests that there is a potential for the market to rebound. However, investors should remain cautious and keep a close eye on the market trends to make informed investment decisions.
In conclusion, the cryptocurrency market is always unpredictable, but it is important to stay updated with the latest trends and to make informed decisions based on the data available. As with any investment, risks and rewards are always present, so it is crucial to exercise caution and invest wisely.
