SEC Delays Decision on Grayscale’s ETH Staking Proposal and Ethereum Market Impact

The SEC has postponed its decision on Grayscale’s ETH staking proposal, affecting market stability. Two significant Ethereum whales have sold substantial amounts of ETH, indicating caution among investors regarding price trends. Meanwhile, Ethereum’s declining stablecoin supply suggests reduced liquidity. A bullish pennant formation is noted on Ethereum’s chart while BTC Bull has gained traction for those bullish on Bitcoin’s future.

The US Securities and Exchange Commission (SEC) has postponed its determination regarding Grayscale’s application to allow ETH staking within its spot Ethereum ETF and Ethereum Mini Trust ETF, with the new deadline set for June 1. This delay has created uncertainty in the market.

Grayscale aims to enable its ETFs to engage in Ethereum’s proof-of-stake validation, making ETH staking accessible for traditional investors, all while adhering to stringent custody and compliance protocols.

In the meanwhile, two significant Ethereum whales appear to be sceptical about the short-term price prospects. One whale transferred 8,922 ETH (approximately $14.82 million) to Kraken, likely indicating an intention to sell, while another sold 8,001 ETH at $1,632 per coin, reflecting caution in the current market climate.

Additionally, Ethereum’s stablecoin supply has declined by over $1 billion in the last week, indicative of liquidity outflows and reduced DeFi activities on the platform.

The 1-month chart for Ethereum shows a bullish pennant pattern, indicating a continuation of the long-term uptrend established during the 2020–2021 bull market. Recently, Ethereum retested the support line, registering a monthly candle near $1,638, revealing an active defence by buyers in this zone.

Should a breakout occur with significant volume, it could project a price target in the range of $4,000 to $4,500, based on the height of the flagpole. However, the MACD currently exhibits bearish indicators, with decreasing histogram bars and a declining signal line. The RSI stands at 41.61, below the neutral 50 level, indicating a lack of strength and a need for a strong catalyst to regain bullish momentum.

In a contrasting move, BTC Bull ($BTCBULL) emerges as a prominent option for Bitcoin enthusiasts, with aspirations of reaching $250K and beyond. The project has gathered significant attention on X, successfully raising $4.68 million in its presale.

Unique features include a token burn or BTC airdrop triggered by every $25K movement in Bitcoin’s price, enhancing scarcity and providing rewards. Early investors can stake their tokens from supported wallets such as Best Wallet to earn high APY returns. Currently priced at $0.002465, BTCBULL is expected to increase in value soon. Investors interested in this opportunity should connect their wallets to the official BTC Bull website before the anticipated price surge.