Markets
Ethereum struggles to keep pace with crypto market recovery despite positive US economic data
Ethereum struggles to keep pace with crypto market recovery despite positive US economic data
On May 15, the cryptocurrency market experienced an increase in total capitalization of 5.5% following the release of US inflation and retail sales data. However, Ethereum (ETH) failed to fully benefit from this upward momentum. Bitcoin (BTC) price rose more than 7.5% in the last 24 hours to reach $66,190, outperforming Ethereum, which gained just 5% in the last 24 hours and struggled to overcome the $3,000 resistance level.
The rally in crypto markets was largely driven by US macroeconomic data, particularly consumer price index (CPI) data, which revealed a 3.4% year-on-year increase in April, in line with market expectations. However, retail sales data for April indicated stability compared to the previous month, contradicting economists’ forecasts of a 0.4% increase. This unexpected result increased the likelihood that the US Federal Reserve (Fed) will implement measures to stimulate the economy.
Some analysts believe that the pending decision by the US Securities and Exchange Commission (SEC) on May 23 regarding VanEck’s spot Ethereum ETF application is a key factor influencing Ethereum’s struggle to overcome the US resistance level. $3,000. Traders are hesitant to make investment decisions until the outcome of the SEC’s decision becomes more certain. An SEC rejection could result in a short-term market correction despite Ethereum’s promising long-term prospects.
Eric Balchunas, senior ETF analyst at Bloomberg, express doubts about approving a spot Ethereum ETF in 2024, given the SEC’s cautious approach toward 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) is 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 direction of Ethereum’s price.