Unfavorable Fed Policies May Keep Lid on Ethereum Price – Crypto News – Crypto News
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Unfavorable Fed Policies May Keep Lid on Ethereum Price – Crypto News

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2 years ago

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Ethereum (ETH), the world’s second largest cryptocurrency by market capitalization is not having the best of week following the upset the industry received as the US SEC filed securities violation charges against Binance and Coinbase Exchanges respectively. At the time of writing, Ethereum was changing hands at a price of $1,844.24, down by 0.84% ​​over the past 24 hours and by more than 1.2% in the trailing 7-day period.

Commenting on the outlook for Ethereum, Mike McGlone, Bloomberg Intelligence’s Senior Macro Strategist pointed out the key protocol metrics that can boost the cryptocurrency and the negative sentiments that can generally slow down growth. Taking to Twitter, he said Ethereum currently has a diminishing supply, a feature that is good for the protocol.

This diminishing supply, however, is negated by a low demand and adoption. Assuming the diminishing supply is matched with a high demand, the acquisition of Ether, the utility token of the protocol will soar, hence a push in its price. The top market strategist also pointed out at the impact of unfavorable Fed and technical backdrop at the beginning of June as a major factor that can put a lid on the potential growth in the price of Ethereum.

The Ethereum Exemption

The securities status of Ethereum was not a subject of conversation this week as the SEC generally dwell on other altcoins such as Cardano (ADA), Solana (SOL), Filecoin (FIL) and Decentraland (MANA) amongst others.

Although not currently on the regulator’s radar, SEC Chairman Gary Gensler has once Commented on Ethereum’s securities status following the protocol’s Merge event that turned it into a Proof-of-Stake (PoS) blockchain. The current reality is that Ethereum is as unsafe as the other digital currencies that have been designated by the regulator and depending on how events shape up in the long term, it may impact the growth outlook of the coin.

Ethereum has maintained its ranking as the second largest after Bitcoin and despite the current bearish outlook, there is no doubt it will maintain this position for much longer.

Benjamin Godfrey is a blockchain enthusiast and journalist who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture. Follow him on Twitter, LinkedIn

The content presented may include the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

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