Ethereum (ETH) recorded a 330% year-over-year (YTD) increase, driven by growth in the decentralized financial sector (DeFi) and non-fungible tokens (NFT).
However, investors are worried if Ethereum is bearish driven by a 15% price correction after touching an all -time high (ATH), $ 4,870 on November 10th.
One of the factors was the termination of the $ 550 million Ether option on November 19th.
At the time of writing, ETH is trading at $ 4,129, and there is potential for this asset to continue to decline below $ 4,100 ahead of option termination. Investors expect profits to reach $ 140 million.
However, if Ether’s correction is as much as 12% three days ago, a bullish presence will wipe out a $ 60 million loss if the ETH price termination occurs above $ 4,200.
Several other factors deserve attention, including legislation that has yet to be final and transparent, especially in the United States (US):
The President’s Working Group on Financial Markets (PWG) published a report on the risk of stablecoins on Nov. 1, urging congress to issue a framework using the jurisdiction of the Securities Exchange and Commission (SEC) and Commodity Futures Trading Commission (CFTC).
Legal regulators objected to changes to tax reporting rules for cryptocurrency transactions exceeding $ 10,000 under the new infrastructure bill.
As a result, analysts think the $ 140 million loss, if unavoidable, is much better given that its main bearish sentiment stems from ‘chaotic’ crypto legislation.
