Ethereum (ETH) is looking to attempt a short-term bull run on Wednesday after breaking out from a five-day horizontal movement. Reduced revenue in ETH Mainnet and the Securities & Exchange Commission's (SEC) potential decision on spot ETH ETFs have also sparked debate in the crypto community.
Read more: Ethereum bears attempt to take lead following increased odds for a spot ETH ETF denial
Ethereum Layer 2s and spot ETH ETFs are trending among crypto investors. Here are market movers for the largest altcoin:
Also read: Ethereum trades horizontally as institutional whales dump heavily on Coinbase
The SEC previously requested the references to the CB SSA be removed from the BTC spot 19b-4 apps, and made clear that it was not a basis for approval in the BTC spot order on Jan 10. They can't do that again here. pic.twitter.com/CEe2KV77d7
— Scott Johnsson (@SGJohnsson) May 14, 2024
Ethereum is trading around $2,990 on Wednesday as it attempts to claim the $3,000 key price level again. As previously predicted, the short-term price increase is playing out, and ETH may face strong resistance around the $3,103 and $3,161 mark.
ETH/USDT 4-hour chart
Also read: Ethereum knocking at support’s door
The resistance may prove hard to break due to weak bullish momentum for the largest altcoin. The $2,852 to $3,300 range remains crucial as ETH will likely not trade outside it in the next few days. However, after the SEC's initial decision on spot ETH ETFs on May 23, market participants' uncertainty may be reduced, and ETH would likely need a fresh outlook.
Also, ETH long liquidations have significantly reduced and are now almost equal with shorts. Open interest has risen slightly to 1.97%, confirming the short-term bullish thesis.
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.