The price of Ethereum (ETH) is still inside critical demand; this is the next level of support

The price of Ethereum (ETH) is still inside critical demand; this is the next level of support

The price of Ethereum (ETH) is still inside critical demand; this is the next level of support

There is no opposition in ETH's critical demand zone, which is located between $2,388 and $2,460, suggesting that an upward trend is likely.

Ethereum's price has seen some selling pressure amid the selloff in the larger cryptocurrency market. It is presently trading at $2,421, down 2.02%, with a market value of $291 billion.

The price of ether stays in the critical demand area

Renowned cryptocurrency expert Ali Martinez emphasized the present situation of Ethereum ($ETH) in a recent market report. At $2,388 to $2,460, the second-largest cryptocurrency is situated in a significant demand zone. Martinez states that the near-term trajectory of Ethereum will depend on how strong this support level is; a positive outcome would indicate an easy road to the higher because of little opposition.

Martinez did, however, offer a warning, implying that Ethereum would have negative consequences if the aforementioned support is lost. There is a chance in such a case of going back to the next significant support area, which is valued at around $2,000. As Ethereum responds to the present state of the market, traders and investors are keeping a careful eye on these crucial milestones.

Significant ETH Developments

Conversely, the Holsky testnet's matching update is slated to activate on February 7, while the Ethereum Denkun upgrade is probably going to go live on the Sepulia testnet around January 30. On January 23, a blog post will be released with a complete update on the client release for both upgrades. This article will provide stakeholders a detailed understanding of the testnet activation procedure.

The market is hopeful that a spot Ethereum (ETH) exchange-traded fund (ETF) would be approved by May 23 of this year, which is the SEC's deadline for Ark21Shares applications. JPMorgan (JPM) estimates that there is only a 50% likelihood that the SEC will approve the ETF by May.

The market's attention has shifted to Ethereum as the next possible contender for spot ETF clearance in the US after the ascent of the Bitcoin (BTC) ETF story last year. According to JPMorgan, the Grayscale Ethereum Trust (ETHE) has been declining throughout the summer and has maintained a discount to net asset value (NAV) of around 12% for the last two months.

According to JPMorgan, there are others who claim that the SEC may soon classify ETH as a commodity since it chose not to include the cryptocurrency in its action against cryptocurrency exchanges for violating securities laws. Almost certainly going to be approved as a spot ETF, which is a necessary need. Some contend that it stands to reason that Ether is regarded as a commodity given the establishment of an ETF based on Ether futures in September.