Markets
Ethereum is struggling to keep up with the cryptocurrency market rally despite positive economic data from the United States
Ethereum is struggling to keep up with the cryptocurrency market rally despite positive economic data from the United States
On May 15, the cryptocurrency market saw a 5.5% increase in total capitalization following the release of inflation and retail sales data from the United States. However, Ethereum (ETH) they failed to fully benefit from this upward momentum. Bitcoin (BTC) price rose more than 7.5% in the past 24 hours to reach $66,190, outperforming Ethereum, which gained just 5% in the past 24 hours, and struggled to break above the resistance level of 3,000 dollars.
The rally in cryptocurrency markets has been largely driven by US macroeconomic data, particularly consumer price index (CPI) data. revealed a 3.4% year-on-year increase in April, in line with market expectations. However, April retail sales data indicated stability from the previous month, contrary to economists’ forecasts of a 0.4% increase. This unexpected outcome has increased the likelihood that the US Federal Reserve (Fed) will implement measures to stimulate the economy.
Some analysts believe that the pending decision from the US Securities and Exchange Commission (SEC) on May 23 regarding VanEck’s application for Ethereum spot ETFs is a key factor influencing Ethereum’s struggle to surpass the level of resistance of $3,000. Traders are reluctant to make investment decisions until the outcome of the SEC’s decision becomes more certain. A rejection by the SEC could lead to a short-term market correction, despite Ethereum’s promising long-term prospects.
Eric Balchunas, senior ETF analyst at Bloomberg, expressed doubts about the approval of an Ethereum spot ETF in 2024, given the SEC’s cautious approach towards products that can be classified as securities, especially those involving native staking services.
This skepticism is also reflected in the Ether derivatives markets. Currently, the Ether futures premium (base rate) stands at 9%, indicating a lack of enthusiasm regarding the spot ETF decision and suggesting neutral sentiment among traders. In the options market, there is a balance in demand for call (buy) and put (sell) options, indicating uncertainty about the future price direction of Ethereum.