Ethereum, the largest altcoin in terms of market value, stands as the most resilient platform for smart contracts. Its DeFi applications, which tokenize real-world assets of banks, have gained significant traction among a wide user base. However, despite expectations of higher peaks in the price of ETH in the upcoming months, the anticipated scenario does not always come to fruition.
Ethereum and the Month of May
As April draws to a close, we find ourselves entering the critical month of May for Ethereum. The final decision dates for the ETH ETF applications submitted by VanEck and Ark&21Shares are scheduled for May 23. As the month concludes, the SEC will announce its decisions on these two ETFs, as well as the fate of other pending applications.
Unlike the situation with spot BTC ETFs in January, there is a possibility that applications that have not yet reached their decision dates may be rejected. The consensus among many is that rejection is highly likely. Even Bloomberg experts have revised their early-year predictions in a negative light. It is widely believed that the Ethereum Foundation has already made the technical decision to reject these applications, thereby nullifying the most significant price catalyst for Ether this year.
The ETH price chart indicates that the possibility of rejection has already been factored in, as buyers are stepping in at the $3,260 level. However, if there were to be a surprise and the SEC were to shock everyone with an approval, ETH could experience a rapid surge above $4,000. Considering the SEC’s actions during the BTC ETF approval process, such as fake announcements from official accounts and Gary Gensler’s hesitant approval statements, it seems unlikely that such a scenario would unfold.
The SEC and the Nightmare in Crypto
The SEC’s concerns about Ethereum’s new model potentially leading to centralized control and the legal actions it has taken form the foundation for expectations of ETF rejections. The Wells Notice sent to Consensys, the largest company in the Ethereum ecosystem, along with the notice issued to Uniswap 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 classify Ethereum as a security would spell the end for all these innovations, allowing the rest of the world to surpass us. “This is something we cannot tolerate. It is not just about crypto and blockchain; it is an attack on the technology itself,” the spokesperson states.
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 a significant level of risk. It is important for individuals to conduct their own research before making any investment decisions.
