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Ethereum, the leading altcoin in terms of market value, stands as the most robust platform for smart contracts. Its reach extends to a vast number of users through DeFi applications that tokenize real-world assets from banks. However, while we anticipate higher peaks in ETH price in the coming months, it’s important to acknowledge that the expected scenario doesn’t always come to fruition.
Ethereum and the Month of May
As April draws to a close, we find ourselves on the brink of the critical month of May for Ethereum. The final decision dates for the ETH ETF applications submitted by VanEck and Ark&21Shares have been set for May 23. As the month concludes, the SEC will unveil its decisions on these two ETFs, as well as the fate of other pending applications.
Unlike the situation with spot BTC ETFs in January, it is likely that applications that haven’t yet reached their decision date will be rejected. Almost everyone is certain that rejection is imminent. Bloomberg experts have revised their earlier predictions negatively. Many believe that the Ethereum Foundation has already made the technical decision to reject them, thus nullifying the most significant price catalyst for Ether this year.
The ETH price already reflects the possibility of rejection, as buyers are stepping in at $3,260. However, if the SEC were to surprise everyone and announce approval, ETH could swiftly rise above $4,000. Considering the SEC’s behavior during the BTC ETF approval process (fake announcements from official accounts, Gensler’s hesitant approval announcements, etc.), is such a scenario likely? It seems highly improbable.
The SEC and the Nightmare in Crypto
The SEC’s implications that Ethereum’s new model could centralize control and the legal actions it has taken serve as the basis for the expectation of ETF rejection. The Wells Notice sent to Consensys, the largest company in the Ethereum ecosystem, the Uniswap notice, and the requested documents regarding the relationship between the Ethereum Foundation and crypto companies indicate that the SEC has already initiated its attack.
According to a spokesperson from Consensys, the SEC’s desire to label Ethereum as a security would spell the end for all these innovations, and the rest of the world would surpass us. “This is something we cannot tolerate. It’s not just about crypto and blockchain; it’s an attack on the technology itself,” says the spokesperson.
Disclaimer: The information provided in this article should not be considered as investment advice. Investors should be aware that cryptocurrencies are highly volatile and carry risks, and should conduct their own research.
