Selling pressure on Ethereum [ETH] has intensified as potential issuers of spot ETH ETFs await feedback from the Securities and Exchange Commission (SEC) regarding their S-1 filings, submitted on May 31.
Many anticipated that the regulatory body would provide updates on these filings by June 7. However, none of the eight prospective issuers, who had their applications filed on May 23, received any response.
While the duration of this process remains uncertain, SEC Chairman Gary Gensler mentioned in a recent interview with CNBC that approving S-1 forms could “take some time.”
ETH bears the brunt
At the time of writing, ETH is valued at $3,539. According to CoinMarketCap, the leading altcoin has seen a nearly 10% decline over the past week.
This price drop is attributed to decreased demand for the altcoin. Currently, its key momentum indicators are below their respective midlines, indicating a surge in selling pressure.
For instance, ETH’s Relative Strength Index (RSI) stands at 45.40, while its Money Flow Index (MFI) is at 45.69. These indicators measure the momentum and strength of the asset’s price movements. These values suggest that market participants prefer selling off ETH rather than accumulating new holdings.
Related: ZKsync to Airdrop 3.6 Billion ZK Tokens Next Week
ETH’s declining Chaikin Money Flow (CMF) confirms this trend. At the time of writing, its CMF is on a downward trajectory and below the zero line at -0.01. This indicator tracks the flow of money in and out of the asset market. A negative CMF value signals market weakness, indicating outflows and a bearish trend for the asset.
Furthermore, the negative values of ETH’s Elder-Ray Index have reinforced the bearish outlook for this altcoin. This indicator measures the balance of power between buyers and sellers in the market. When its value is negative, it suggests that bearish sentiment is prevailing.
As of now, ETH’s Elder-Ray Index stands at -209. If selling pressure increases, ETH’s price could drop below $3,500 to around $3,403. Conversely, if bullish sentiment returns to the market, ETH’s price might rise to $3,610.
