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Gensler Going After ETH?

Uncertainty around ETH's regulatory status was on investor minds this week.
Jack Inabinet Jack Inabinet Mar 23, 20242 min read
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market analysis Gensler Going After ETH?

Crypto had a rough go this week after the ecstasy of earlier this month. The total crypto market cap finished the week in the red after a couple of breakout attempts. What major events impacted crypto markets this week?

Broader crypto markets rallied hard on Wednesday – their only green day of the week – after the Federal Reserve announced that it is holding interest rates steady and continues to maintain expectations for 3 rate cuts this year.

This interest rate decision comes amid recent upticks in growth and inflation expectations, and the Fed’s unwillingness to continue to raise rates combined with the confirmation they will begin cutting at some time this year undoubtedly provide comfort for bulls who need no longer worry that higher interest rates will drain liquidity from risk assets.

Ether’s odds of ETF approval took a serious hit this week, with bearish approval sentiment from top ETF analysts concerned about the lack of communication between the Securities Exchange Commission (SEC) and spot ETF applicants only compounded upon by the release of two separate reports that indicated the SEC may be looking to classify ETH as a security.

While there wasn’t much substance to the negative headlines, with some labeling it as “bullish FUD,” traders on Polymarket are now pricing in only a 21% chance that ETH ETFs receive approval by the crucial May 23 deadline, down from 80% at the start of the year.

The ETH/BTC ratio has fallen alongside the odds of spot ETH ETF approval during the past two weeks and currently sits 11% off its March highs. Despite falling underneath the long term downtrend, the Ratio continues to hold the key resistance level of 0.05.

Source: TradingView

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Jack Inabinet

Written by Jack Inabinet

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Jack Inabinet is a Senior Analyst with a passion for exploring the bleeding edge of crypto and finance. Prior to joining Bankless, Jack worked as an analyst at HAL Real Estate where he conducted market research and financial analysis for commercial apartment development and acquisition activities in the Seattle region. He graduated from the University of Washington’s Michael G. Foster School of Business and remains based out of the Seattle area.

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