Ethereum's price movement today can be attributed to a combination of regulatory developments and market sentiment. The SEC's crypto unit is reportedly being downsized as the Trump administration aims to ease regulations, which could lead to a more favorable environment for digital assets like Ethereum. This regulatory shift is seen as a move to remove the "speed limits and guardrails" that have previously constrained the crypto market, potentially boosting investor confidence. Additionally, Coinbase's recent filing in their FOIA lawsuit against the SEC highlights the need for transparency in regulatory actions impacting Ethereum, which could further influence market sentiment.
Despite these regulatory developments, Ethereum has faced challenges in maintaining its value relative to Bitcoin. The ETH/BTC ratio has hit a four-year low, reflecting a shift in institutional preferences towards Bitcoin ETFs. This underperformance is partly due to Ethereum's inflationary supply metrics and a lack of strong catalysts to support its price. However, there is a "mildly positive sentiment" for Ethereum in the medium to long term, as noted by Sean Dawson, head of research at Derive.xyz, who pointed out that bullish sentiment indicators are still present.
Ethereum's price has increased by 2.45% today, reaching a high of $2,798.87.