Don't Be Too Let Down By Reports of SEC's Likely Denial of Ethereum ETF - An Altcoin Relief Bounce Continues Looking Likely

#Ethereum is the top trending topic in #cryptocurrency, as traders are discussing the latest reports regarding the #SEC's reported plans to reject the proposals for spot #EthereumETF's in May. Much of the community attributes the major rise in #crypto, beginning all the way back in mid-October, to two things:

1) Optimism over the increased trading exposure from spot #BitcoinETF's, which were indeed approved on January 11, 2024.
2) Excitement surrounding the $BTC #halving, which occurred as expected on April 19, 2024.

With these two events now in the past, traders are looking ahead to the future. The potential for spot #ETF's becoming available for $ETH would mean a lot for the #2 asset in #crypto, as well as other #altcoins.

However, it appears for now that the news is leaning toward this not yet being the time for the #SEC to approve of other assets.

As we document regularly in our content, data back testing indicates that prices typically move the opposite direction of the crowd's expectation. If #FUD continues to rise as a result of trader impatience, this can actually benefit non $BTC assets.

There already has been a notable rise in #bearish calls from traders as the vast majority of assets have retraced considerably since the $BTC #AllTimeHigh back on April 14th. Therefore, the probability of some relief bounces coming over the next week appear higher than usual.

If you're holding #Ethereum or considering buying in, be prepared for potential volatility with every minor update as the #SEC gets closer to its May decision. If their stance softens and a surprise approval is granted, we could see a sharp uptick in Ethereum's value initially, but actually see a mid-term drop caused by overly eager traders' #FOMO giving cause for whales to drop prices.

Regardless, as we continue to update on this story, remember - if the mainstream audience is #selling the rumor, there is historically an increased justification for you to be #buying the news.

Explore Santiment's Top Trending Tokens dashboard here, and keep tabs on which assets are driving markets on a daily basis.