Ethereum breaches key support, receives ‘digital oil’ tag from world's largest bank

• Ethereum is termed the "digital oil" of the digital future by the world's largest bank, ICBC.

• SEC is yet to provide feedback on ETH ETF S-1s despite expectations of agency's comments earlier on Friday.

• Ethereum's recent sell-off may be temporary, considering bullish events on the horizon.

Ethereum (ETH) is down over 6% on Tuesday as the general crypto market is trending downward. Despite the bearish sentiment, the Industrial & Commercial Bank of China has commended Ethereum's growth, describing it as "digital oil."

Daily digest market movers: SEC stays mute, ICBC commends ETH

In a recent report, the world's largest bank, the Industrial & Commercial Bank of China (ICBC), hailed the growth of Ethereum and Bitcoin. While comparing Bitcoin to Gold due to its scarcity, the bank also termed Ethereum "digital oil," noting its role in "providing a strong platform" for supporting a host of Web3 innovations.

"Ethereum has been continuously upgrading its technology in terms of security, scalability and sustainability, providing technical power for the digital future," the report states.

Meanwhile, the Securities & Exchange Commission (SEC) has yet to respond to prospective spot ETH ETF issuers on Tuesday, more than one week after they filed their S-1 registration statements on May 31. Issuers had expected the agency to comment on their filings on June 7. However, they have yet to get any feedback and now expect the SEC to provide comments this week, a source told The Block. According to Nate Geraci, issuers will file another round of amendments after they receive the SEC's comment.

The SEC approved spot ETH ETF 19b-4 filings of issuers on May 23. Before spot ETH ETFs can begin trading though, the agency must approve the issuers' S-1 registration statements. SEC Chair Gary Gensler told Reuters last week that the timing of the S-1 approval depends on how fast issuers respond to the agency's comments.

While the wait continues, issuers have stated that they plan to market the ETFs as a “producing tech stock” or the “ultimate app store.”

ETH technical analysis: Ethereum's recent setback may be temporary

Ethereum is trading around $3,490, down over 6% on Tuesday. The market appears to be in risk-off mode ahead of the Consumer Price Index (CPI) report and Federal Open Market Committee decision on June 12, according to QCP Capital.

The market decline has accelerated ETH liquidations, with long liquidations accounting for $48.39 million of a total of $52.58 liquidations in the past 24 hours.

ETH open interest (OI) has declined by about $680 million between Friday and Tuesday. Specifically, ETH options OI also reduced by $1.21 billion in the same time range. Coupled with declining options volume, this confirms the bearish sentiment in the market.

ETH/USDT 4-hour chart

ETH has breached the $3,618 support and is looking to extend the downward move below the $3,457 price level. With spot ETH ETFs on the horizon, the current sell-off may prove to be a temporary setback and a good accumulation zone. A further plunge below the $3,300 support will strengthen the bearish trend.