ETH Drops to $1,580 as SEC Postpones Ethereum ETF Again: Is a Recovery Possible?

The price action of Ethereum continues to draw attention as the market weighs the repercussions of delayed decisions regarding the Ethereum ETF and ever-changing dynamics in ETH staking. Although there has been some volatility, with the Ethereum price plunging beneath critical support levels and brushing on the $1,600 zone, these remain quite optimistic in that whale investors are still buying, indicating underlying confidence.

Technical indicators show the market at a crossroads, with resistance at around $1,732 and support at $1,587. Speculation mounts on the part of a ruling by the SEC on Ethereum ETF applications, expecting the possibility of higher staking yields and institutional investors joining for the second time, an event that likely determines the next major move in ETH.

SEC Delays Ethereum ETF Decision, Fueling Market Volatility

The U.S. Securities and Exchange Commission (SEC) has delayed yet again any ruling concerning the allowance of staking within Grayscale’s proposed ETF for Ethereum until after June 1, 2025. With this being said, such delays hamper the opportunity for U.S. investors to earn ETH staking rewards through regulated ETF products in Hong Kong, Canada, and the EU, which are advancing with these features. The surprise announcement hit the crypto markets hard: in the next hour, the price of Ethereum crashed by over 4% at increased trading volumes and immense market volatility. The technical indicators indicated that the downturn of the Ethereum Relative Strength Index (RSI) fell into an oversold territory, showing a loss of momentum.

The SEC fluidly navigates the above and many other concerns before granting future staking in ETFs, primarily anchored in protecting investors and the discourses on applying such staking to fit into a regulated financial product. Such uncertainty has made it impossible for American investors to enter into what has become commonplace passive income elsewhere, hence the delay. 

Ethereum Price Prediction For April 16, 2025

The 5-minute Ethereum price chart features strong volatility while the price moves within clearly distinguished support zones and resistance areas. ETH dropped from its surrounding resistance level at $1,659, which created bearish market conditions and forced prices to approach support at $1,554. Ethereum maintains a price level of $1,580 after its stabilization while encountering major hurdles above. The MACD indicator displays bearish momentum through multiple death crosses, yet golden crosses within show potential bullish price moves. 

Chart 1, analysed by Anushri Varshney, published on TradingView, April 16, 2025

The MACD indicator maintains bullish potential through future crossovers, given higher levels of market buying pressure. The RSI indicated an upward movement out of its oversold zone because investing buyers entered the market to halt price reductions. ETH continues to hold an unpredictable market structure because it cannot surpass resistance levels. Ethereum needs to maintain a price above $1,550 to avoid a lower price re-evaluation, while successfully breaking through $1,660 could start an upward price movement toward more challenging resistance zones. Market participants should monitor how key resistance levels hold their support or how support levels break down.

What’s Ahead For Ethereum– ETF and Staking Uncertainty

The price movement of Ethereum will relate highly to the regulations and societal perception of Ethereum ETF and ETH staking. Prolonged delay by the SEC in approving a spot Ethereum ETF has brought about uncertainty and subsequently triggered falls in prices on a short-term basis, with ETH seen to have recently broken below significant support levels. However, analysts acknowledge cautiously that if an ETF approval is forthcoming, perhaps even as early as July, renewed institutional inflows and bullish momentum will be headed toward Ethereum, especially as it becomes more accessible for U.S. investors concerning ETH staking.

Technical setups suggest a corrective phase, with support areas likely forming between $2,100 and $1,840, although an upward momentum above $2,700 would imply that the greater trend continues. Investors should necessarily keep abreast of such developments and track price action very closely.