Ethereum’s recent rally of 15% over the past two weeks has come to a halt, with its price consolidating between $2,700 and $2,600. Despite the earlier momentum, this week has seen Ether struggle to continue its upward trend.
SEC Delays Ethereum ETF Decision
In a recent filing on September 24, the U.S. Securities and Exchange Commission (SEC) announced that it would delay its decision on options trading for Ethereum spot ETFs. Initially expected by September 26-27, the SEC has extended the review period to November 10-11.
This comes just days after the SEC approved options trading for the iShares Bitcoin Trust (IBIT) on Nasdaq. The cautious move by the SEC reflects its approach to ensuring market safety, as seen in its eight-month review before approving IBIT.
Betting Markets React to SEC Announcement
Following the SEC’s decision, the odds of Ethereum hitting a new all-time high (ATH) in 2024 have shifted significantly. On Polymarket, a leading prediction platform, 85% of users now bet that Ethereum will not reach a new ATH in 2024, up from 71% last week.
Only 14% are optimistic about Ethereum reaching a new ATH, while less than 1% believe it could happen within the next five days. Despite this, the small group of traders expecting an ATH in Q3 has bet a higher total value of $1.23 million, compared to $1.07 million from those betting against an ATH.
Ethereum’s Price Struggles at $2,700
After hitting a high of $2,702 on Monday, Ethereum’s price has remained stagnant over the past two days. This sideways movement indicates that the market could be experiencing a phase of distribution between buyers and sellers.
With prices moving 14% since September 15, traders are expected to take profits around the current range, possibly pushing the price down to $2,500. The relative strength index (RSI) has also entered the overbought territory, signalling potential short-term selling pressure in the days ahead.
