Ethereum (ETH) began the week by posting losses of 4.2% on Monday after recent filings from Consensys revealed that the Securities & Exchange Commission (SEC) began formal investigations into ETH's security status since March 2023.
Read more: Ethereum cancels rally expectations as Consensys sues SEC over ETH security status
Ethereum has slipped back to key range on Monday following recent happenings in the crypto market. Here are your key ETH market movers:
I said this on a recent town hall Spaces (as one of the main reasons eth etf ain’t happening) and some guy sharply refuted it. Forget who. I think he was a lawyer. Anyway this is for you Holmes: https://t.co/vtxRCbytpq
— Eric Balchunas (@EricBalchunas) April 29, 2024
Also read: Ethereum fees drops to lowest level since October, ETH sustains above $3,200
6 whales dumped more than 44K $ETH($140M) after the market dropped!
— Lookonchain (@lookonchain) April 29, 2024
0x4353 deposited 10,431 $ETH($32.66M) to #Binance.https://t.co/3hqVXQvHlu
0x4446 deposited 11,892 $ETH($38M) to #Binance.https://t.co/HvLu7N4DnM
0x488b sold 3,543 stETH($11.23M) at $3,170 and 3,000… pic.twitter.com/93ISSkJWfW
After trading inside the $2,852 and $3,300 range for 15 days, ETH briefly broke the upper level on Sunday. However, it quickly erased its weekend gains a few hours later, beginning the new week at around $3,170. This shows that the range is becoming important for ETH.
Read more: Ethereum dips slightly amid Renzo depeg, BlackRock spot ETH ETF amendment
Like the general crypto market, Ethereum appears to need a trigger that can push its price heavily. ETH may sustain a sideways movement in the coming days and then rise slightly to fill the liquidity void of Sunday.
ETH/USDT 4-hour chart
ETH may also experience brief volatility as the SEC's spot ETH ETF decision on May 23 approaches. Long actions may slow down, except if ETH dips to around $2,900 to $3,000.
In the long run, if Bitcoin fails to see a major move, ETH will likely continue consolidating. Ethereum is trading at $3,181 at the time of writing.
Ethereum is a decentralized open-source blockchain with smart contracts functionality. Serving as the basal network for the Ether (ETH) cryptocurrency, it is the second largest crypto and largest altcoin by market capitalization. The Ethereum network is tailored for scalability, programmability, security, and decentralization, attributes that make it popular among developers.
Ethereum uses decentralized blockchain technology, where developers can build and deploy applications that are independent of the central authority. To make this easier, the network has a programming language in place, which helps users create self-executing smart contracts. A smart contract is basically a code that can be verified and allows inter-user transactions.
Staking is a process where investors grow their portfolios by locking their assets for a specified duration instead of selling them. It is used by most blockchains, especially the ones that employ Proof-of-Stake (PoS) mechanism, with users earning rewards as an incentive for committing their tokens. For most long-term cryptocurrency holders, staking is a strategy to make passive income from your assets, putting them to work in exchange for reward generation.
Ethereum transitioned from a Proof-of-Work (PoW) to a Proof-of-Stake (PoS) mechanism in an event christened “The Merge.” The transformation came as the network wanted to achieve more security, cut down on energy consumption by 99.95%, and execute new scaling solutions with a possible threshold of 100,000 transactions per second. With PoS, there are less entry barriers for miners considering the reduced energy demands.