Ethereum Faces Major Regulatory Headwinds: Will Bulls Break $3,300?

Ethereum is firm at press time but trending inside a narrow range defined by the April 13 bear candlestick. There are flashes of strength. However, if buyers are to take over, there must be a conclusive breakout above local resistance levels, backed by expanding participation. Thus far, this has yet to print, and the coin remains under pressure from a technical perspective.

The slump reflects on how Ethereum has been performing in the past day. The coin is stable, up 4%. Nonetheless, it is down 13% in the previous week. These statistics show that despite optimism and expectations of price gains, bears have the energy to absorb demand. 

The following Ethereum news events might impact price action in the coming days:

• Rumors of Gary Gensler‘s imminent resignation continue to swirl. If the United States SEC chair resigns, some observers think Ethereum will have a better chance of its spot ETF being approved. While bullish, only an official confirmation of Gensler’s step down will drive prices. Before then, the Commission has yet to approve a spot Ethereum ETF and classify the status of the second world’s most valuable coin.
• ConsenSys Senior Counsel and Director of Global Regulatory Matters Bill Hughes has revealed that the United States SEC is investigating the Ethereum Foundation. There are even concerns that the agency could build a case to declare ETH a security. 

ETH/USD remains within a bearish formation, per the candlestick arrangement in the daily chart.

Unless there are sharp gains above the April 13 range, the path of least resistance is southwards.

Therefore, from the chart, every attempt higher but below $3,300 might offer entries for sellers to short, targeting $2,600.

A price dump below $2,800 and the current range will accelerate the sell-off further toward crucial support levels in the daily and weekly charts. The key ones being $2,600 and $2,000.