Ethereum touches below $3000 psychological level again

After a recovery last week, Ethereum (ETH) is back near the $3000 psychological level, with the price briefly touching $2994.25 during today’s session.

Yesterday Ethereum – the second largest cryptocurrency by market capitalization, has dropped nearly 1.86%.

The drop comes amid the Grayscale's decision to withdraw its ETH futures ETF application. The decision to withdraw came just 3 weeks before the Securities and Exchange Commission's (SEC) official decision.
 

A diminishing chance of ETH spot ETF approval by the SEC is also taking a toll on the current price action.
 

According to the poll (on polymarket.com), there is a 7% chance for the Ethereum spot ETFs to be approved by May 31, 2024 (vs. >50% in January 2024). 

The denial of the ETH spot ETFs applications by the SEC may translate into Ethereum moving lower.

From a technical perspective ...

• The current price is trading below important simple moving averages (21-, 50-, and 100-period SMAs), underscoring the current bearish trend
   
• The Relative Strength Index is floating in neutral territory at ~42, indicating the potential for further declines (< 30 - oversold, > 70 - overbought)
   
• On the downside, the psychological level of $3000 is an important immediate support level. A breach below it may drag the price further down towards the $2800
   
• On the upside, the 21-period SMA may be the next important resistance/target level for the ETH bulls, followed by the 100-period SMA