Ether (ETH) analysis aroused curiosity: What will happen?

Cointelegraph has published an in-depth analysis of Ether (ETH), which has been subject to regulatory pressures and has recently undergone the Dencun upgrade.

Ethereum, which improved the transaction fees of layer-2 projects with the Dencun upgrade, could not get out of the painful processes. Ether (ETH), the native token of the project, has not yet gained strength against Bitcoin (BTC). Additionally, ETH dropped to $3,050 as a result of recent developments.

Cointelegraph suggested that ETH will maintain $3,200 in light of activity in layer-2 projects. In Cointelegraph's market analysis, critical developments for Ether were mentioned.

Bullish expectations for Ether (ETH)

According to the news by Cointelegraph, bullish expectations for Ether (ETH) depend on the approval of the spot Ethereum ETF.

ETH, which fell due to the selling pressure from the $ 4,100 region on March 12 and fell to $ 3,050, barely managed to hold on above $ 3,200. Cointelegraph stated that on-chain activities generated by layer-2 projects have made $3,200 a strong support point.

According to Cointelegraph, spot Ethereum ETFs remain a potential catalyst. SEC, the number one regulator in the USA, has recently decided to postpone successive spot Ethereum ETF applications. While the SEC is expected to make the final decision on May 23, Bloomberg's ETF analyst James Seyffart is considering a negative scenario. Seyffart doesn't see ETF approval in a fundamental scenario.

Upgrades and improvements in the Ethereum network are also among the factors that create bullish expectations. Dencun, held on March 13, attracts attention from RollAp solutions. As a result, transaction fees have decreased in layer-2 projects such as Arbitrum Optimism and Base. At this point, interest may increase demand.

Cointelegraph thinks Dencun will drive adoption of layer-2 solutions. Data showed that strong tier-2 projects experienced a sharp rise in 7-day volumes. Transaction fee pressure on ETH has decreased somewhat.

Regulatory pressure impacts Ether (ETH) price

Cointelegraph stated that the bearish outlook for the medium-term price of Ether (ETH) continues and this is due to the regulatory environment in the USA.

Cointelegraph noted that the SEC is examining companies for possible connections to the Ethereum Foundation and is seeking to classify Ether as a security.

This move by the SEC was reportedly triggered by Ethereum's transition from a proof-of-work to a proof-of-stake network, and several US-based companies were asked to provide financial records and documents related to their interactions with the Ethereum Foundation.

Market experts such as Van Buren Capital and attorney Scott Johnsson attributed the SEC's reason for launching the Ether investigation to spot Ethereum ETF applications. Analysts mentioned that the SEC is trying to create an excuse to reject spot Ethereum ETFs.

Cointelegraph pointed out that despite all these details, the Ethereum network has approximately $95 billion in total assets locked (TVL). Citing Ethereum as the leader in terms of deposits, Cointelegraph also touched upon the importance of BlackRock's initiatives.