- Analysts predict a peak cycle for Bitcoin and Ethereum amid regulatory uncertainty.
- Regulatory debates and accusations from the SEC are reinforcing negative sentiment towards Ethereum.
Like Bitcoin [BTC]the leading cryptocurrency, drops below the $60,000 threshold, analysts suggest BTC may have reached its high for this cycle.
Ethereum [ETH] seems to mirror Bitcoin’s movements as both cryptocurrencies are currently on a downward trend.
Commenting on the uniqueness of this crypto cycle, crypto veteran Alex Kruger said,
“The crypto cycle is almost entirely driven by the bitcoin ETF.”
He added:
“ETH was a big disappointment, but has performed well overall for stakers and airdrop farmers.”
Why is Ethereum losing its spotlight?
Bitcoin has undoubtedly achieved remarkable performance by reaching new all-time highs in this cycle. However, Ethereum’s ranking has fallen and is below Solana in terms of product-market fit and retailer popularity.
This begs a question: could the price of Ethereum fall to $2500 within the next seven days?
To answer this, AMBcrytpo analyzed the liquidation levels for ETH.
Source: Hyblock
According to the analysis, the Ethereum market has a cluster of liquidation levels between $2640 and $2750, which attracts traders due to its high liquidity. Moreover, this price range corresponds to a bullish order block observed at the highest levels in the range, further reinforcing its significance.
This underlines that Ethereum’s price is expected to fall to this liquidity range before a potential reversal occurs.
There are concerns surrounding the classification of ETH as a security
Furthermore, the ongoing debate over whether ETH is a security has reinforced negative investor sentiment towards Ethereum.
Amidst these statistics, a new development also took place whereby Representative Patrick McHenrythe chairman of the House Financial Services Committee noted:
“New court filings indicate that @SECGov Chairman Gary Gensler knowingly misled Congress when he pressed #ETH’s classification for oversight of his agency during a @FinancialCmte hearing.”
Source: Patrick McHenry/Twitter
This highlights the increasing uncertainty surrounding Ethereum’s regulatory status and its impact on investor sentiment.
Echoing similar sentiments, @TheDustyBCa content creator, took to X (formerly Twitter) and said:
“Ethereum is not being kind to sentiments today.”
A way forward
But now with the aggressive stance taken at the Federal Open Market Committee (FOMC) meeting on May 1. And because the Hong Kong ETFs have been a big disappointment, managers are still waiting for the tables to turn. Needless to say, Krüger claims,
“The cycle is not over yet.”