Is Ethereum’s Price Rally Losing Steam?

After a 15% rally in the last two weeks, Ethereum (ETH) is now stabilizing between $2,600 and $2,700.

With a market cap of $316 billion, it has seen over $15.7 billion in trading volume recently.

The U.S. Securities and Exchange Commission (SEC) announced on September 24 that it would postpone its decision on spot Ethereum ETF options until November 10-11.

This extension, originally due on September 26-27, follows the SEC’s cautious approach in light of regulatory concerns, particularly after it recently approved options for the iShares Bitcoin Trust.

Following the SEC news, Polymarket’s betting odds show an 85% chance that Ethereum will not achieve a new all-time high (ATH) in 2024, up from 71% a week ago. Only 14% of bettors believe a new ATH is possible this year, with less than 1% anticipating it within the next five days.

After hitting a high of $2,702, Ethereum has been stagnant for about 48 hours, suggesting a balance in market activity. Traders may start to lock in profits, especially with the relative strength index (RSI) indicating overbought conditions, which could lead to increased selling pressure and a potential dip to around $2,500.

Alexander Stefanov