Ethereum is hinting at a resumption of a sideways movement on Tuesday after seeing inflows for the first time in seven weeks. The Securities & Exchange Commission’s (SEC) Chair Gary Gensler has also called most crypto assets securities following a Wells Notice targeted at ETH-related firms.
Read more: Ethereum traders show uncertainty, SEC delays decision on Invesco's ETH ETF application
Ethereum's price uncertainty among investors is increasing despite recent updates surrounding the largest altcoin. Here are the top market movers:
Also read: Ethereum could see a brief rally despite Michael Saylor's jab at ETH ETFs
Ethereum is looking to resume a sideways movement again on Tuesday after failing to stay above the $3,161 resistance.
Read more: Ethereum to break out of bearish move, ETH ETFs unlikely in 2024
ETH/USDT 4-hour chart
ETH's current price action suggests the popular altcoin would likely follow a horizontal pattern — but more tilted towards shorts — amid uncertainty among traders.
This is confirmed by ETH's liquidations data, which — having slowed down — still sees long liquidations forming the bulk of the digital asset's total liquidations. ETH long liquidations are at $34.56 million, while shorts are at only $8.25 million, according to data from Coinglass.
Coinglass data also shows that Ethereum's open interest has remained relatively flat for the past four days, further strengthening the sideways thesis. If ETH goes below the $3,029 support, it may begin a brief bearish trend.
However, the $2,852 to $3,300 key range is also proving strong as ETH may not see any sustained move outside in the next few weeks, except if the price of Bitcoin sees a significant spike.
Ethereum is trading around $3,067, down 0.3% on the day.
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.