The United States Securities and Exchange Commission has delayed its decision on BlackRock’s application for a spot Ethereum ETF, extending the timeline for wider investor access to Ethereum. A similar delay occurred with Fidelity’s Ethereum ETF, with a decision now expected in early March.
This pattern mirrors delays with Bitcoin ETFs. Analysts anticipate sporadic postponements until late May, expecting a conclusive decision by May 23. The SEC’s cautious stance on crypto is notable, but optimism about Ethereum’s ETF approval remains.
Meanwhile, the price of Ethereum has stabilized around $2,200 after its 20% downfall. It reverted to its previous low, which could indicate the start of a new downtrend. Can this stabilization lead to a recovery, or are we in for another low?
On January 12, ETH reached a high of $2,710. This continued the coin’s uptrend from a low of $1,513 on October 19. This uptrend was the ending wave of a much larger uptrend that started in June 2022.
Ethereum formed a rising channel, with the price interacting with resistance with on a recent high. This interaction resulted in a hard rejection. Today, January 25, ETH is trading at $2,200, near the last low from which this recent high was made.
In this way, the price action hints at a potential reversal as it whips out the gain previously made, indicating that sellers are taking control. If we saw a leading uptrend in a new bull cycle for Ethereum, now we could see its first bull market correction.
The last downtrend doesn’t have much more room to go, but another minor low of $2,100 in the coming days looks likely. After a minor correction to the upside that will establish the first lower high for wave B, another, more significant downturn should take place at wave C.
Projecting with the Fibonacci retracement tool at the 0.618 level, we come up with a target of $1,840 to complete this correction. After this correction ends and we see the first macro higher low, another lasting uptrend would be expected, ultimately bringing Ethereum’s price to a new all-time high.
Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.