Ethereum
$
1,805 has recently faced challenges in surpassing the $1,800 level, prompting investors to favor Bitcoin
$
82,056 as a safer alternative. The ongoing uncertainty surrounding regulatory processes in the U.S. is applying downward pressure on Ethereum’s price. Signs of weakness are emerging in technical indicators, while a noticeable liquidity loss in the market adds to the concerns. The risk of further decline in ETH price is increasing in the short term.
Regulatory Uncertainty Fuels Investor Anxiety
One of the key factors behind Ethereum’s value loss is the lack of clarity in the U.S. regulatory process. The perception of Paul Atkins, a potential SEC chair, as anti-crypto has heightened investor unease. If Atkins assumes office, discussions suggest pro-crypto policies may be sidelined and legislative proposals could be delayed. As investors await a clear legal framework, there has been a rapid exit from Ethereum. This trend has particularly led institutional investors to reconsider their positions. With an increasing perception of risk, capital is flowing towards less volatile assets like Bitcoin. Additionally, a 26% decrease in liquidity in the spot ETH market within the last 24 hours supports this trend.
Technical Indicators Dim Recovery Hopes
From a technical perspective, Ethereum’s price hovers near critical support levels. While the $1,850 mark is seen as essential for recovery, failing to maintain this level increases vulnerability. The MACD indicator still shows that selling pressure persists, and a drop below $1,754 could lead to a deeper correction. On-chain data indicates that if Ethereum falls below $1,600, millions of investors could find themselves in a losing position. Data from IntoTheBlock reveals that the most concentrated ETH accumulation range is between $1,596 and $1,790. This suggests that if the price dips below this range, a wave of additional selling may occur. Investors are currently adopting a cautious wait-and-see approach due to both technical weaknesses and regulatory uncertainty. They are looking for clearer regulatory signals or lower price levels for new purchases. This indicates that pressure on Ethereum may persist in the short term.
