Ethereum's price continues to plummet, shedding over 30% since March 2024 highs, with sellers intensifying their grip. Despite brief respites, the coin's bearish trajectory remains unbroken, with prices recently dipping below $3,000. Analysts predict further pain, with one forecasting a potential "washout" to $2,700.

The analyst notes that Ethereum's price action remains trapped within a falling wedge, indicating a continued downward spiral. Despite fleeting moments of hope, the overall structure suggests a bearish breakout formation, with sellers poised to push prices lower. The daily chart reveals a bearish candlestick arrangement, hinting at a potential collapse below $2,700.

Adding fuel to the bearish fire is the looming threat of regulatory pressure from the United States Securities and Exchange Commission (SEC). Speculation swirls around the potential rejection of spot Ethereum exchange-traded funds (ETFs) this month, with the SEC possibly classifying Ethereum as a security. This classification would have far-reaching consequences, including the potential liquidation of Grayscale's Ethereum trusts and the closure of ETHE.

Consensys, led by Ethereum co-founder Joseph Lubin, has taken legal action against the SEC to protect the broader crypto ecosystem. The company argues that classifying ETH as a security would jeopardize the United States' ability to utilize Ethereum and similar blockchain technology. As regulatory uncertainty intensifies, Ethereum's price teeters on the brink of a potential "washout," leaving investors bracing for further losses.