Ethereum Spot ETF Delayed by SEC; ETH Price Dips Amid Hurdles for Fresh Increase

By: Eliza Bennet

The U.S. Securities and Exchange Commission (SEC) has deferred its decision on Fidelity's proposed Ethereum spot ETF, originally filed on Nov. 17, 2023, and up for decision by Jan. 20, 2024. Utilizing a provision that allows an extension of the deadline by 45 days, the SEC will now make its decision by March 5, 2024.

Bloomberg ETF analyst James Seyffart believes this delay was anticipated, pointing out the significant dates are in late May. This is because the SEC must act on VanEck's competing spot Ethereum ETF proposal by May 23. As proceedings have already begun on this application, any further delay is not feasible. Therefore, the SEC is expected to rule on all pending spot Ethereum ETFs by late May.

Meanwhile, Ethereum price has seen an unexpected dip, failing to increase past the $2,550 and $2,580 resistance points. Like Bitcoin, ETH started a fresh drop below the $2,500 support zone as it continues to struggle with a bearish market trend. Key resistance level revolves around $2,520, above which ETH could see significant growth. However, a failure to clear this resistance could mark another decline for Ethereum, with a potential drop to around $2,320.