SEC Chair Gensler’s dicey response triggers ETH to alter its course. Assessing…

• ETH sell pressure surges after Gensler fails to secure a solid answer about the nature of ETH
• ETH’s cooldown could have led to more downside potential.

The crypto market’s performance has been quite the mid-week rollercoaster for the king of the altcoins as well as its siblings. Ethereum [ETH] suffered yet another blow that triggered another dip below the $2,000 price range.

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Ethereum’s native crypto ETH just experienced an unexpected and hard midweek pivot that pushed it below $2,000. This came days after achieving the highly coveted price target, but the reason for the pivot reverberated across the altcoin landscape. The reason for the bearish outcome is just as surprising and it has something to do with ETH’s price action.

Gary Gensler sends the crypto market into a bearish frenzy

ETH’s sell pressure kicked off after the U.S. SEC chairman Gary Gensler’s grilling during a congressional hearing. He failed to provide a clear answer when asked whether Ethereum is a security or commodity and even tried to dance around the question.

Gensler’s antics are likely the reason for the bearish outcome which affected ETH and most of the top altcoins. This is because failing to offer a clear answer triggered some concerns and FUD among crypto holders. The lack of clarity means the U.S. regulator does not have clear guidelines as far as crypto regulations are concerned. They might as well decide the fate of crypto with a coin toss, a situation that would likely be negative for the market.

ETH pulled back by over 5% on 19 April, to its $1,976 price tag which represented a sizable pullback. What makes this decline so noteworthy is that it undermines the bullish efforts that led to an eventual reclaim of the $2000 price level.

The last time that ETH traded at the current price level was in August 2022. Only for a sharp bearish outcome to wipe off that coveted price level.

Source: TradingView

How many are 1,10,100 ETHs worth today

So, should ETH investors anticipate more downside? According to ETH’s supply distribution, most, if not all of ETH’s sell pressure has been building up for the last three days.

Furthermore, it has been coming from addresses holding between 100,000 and 1 million have been the biggest bearish proponents.

Source: Santiment

Most of the other whale categories have been contributing to bullish momentum and most other top addresses have been buying in the last 24 hours. This outcome may indicate that the market was witnessing some demand, especially after the recent discount.