Ethereum [ETH]’s bearish pressure may subside in short-term, but can the bulls defend the alt in the long run?

Ethereum [ETH]The price trend has seen some significant uptick in the past few days due to less FUD and bearish pressure. However, unforeseen risks and incidents of Black Swan can add to its downside.

One particular factor that could put more pressure on Ethereum is unfavorable crypto regulations. during the recent Altcoin Daily In the interview, Microstrategy’s CEO, Michael Sailor, dodged questions about his opinion on Ethereum. However, he said that the proof of stake [PoS] network securities. This approach could have far-reaching regulatory consequences for Ethereum, especially now that altcoins are moving to a PoS consensus mechanism.

“Ultimately, if you are selling a security to the general public without a disclosure statement, the fact that it is technologically advanced will not protect you from securities liability,” Sailor said.

Ethereum and other PoS blockchains could feel the weight of regulatory pressure if regulators share Saller’s opinion. If this were the result, it could deceive investors and negatively affect the price action of ETH.

Talking about the price action of ETH, the altcoin dropped slightly below $1,000 in mid-June. The coin’s price trajectory since then shows that it has found a new price bottom. However, any bullish attempts since then have been insufficient, resulting in modest growth. It also indicates a lack of investor confidence, otherwise the fall would have been much greater.

ETH short side

An alternative view is that the latest bottom could be a sign that a bullish relief rally for ETH has begun. Investors will be waiting to see if the worst-case scenario is over before finally buying heavily. Regulatory talks may be among the reasons why investors are still proceeding with caution.

Despite these concerns, the number of active ETH addresses has increased significantly since the last week of June. Addresses with more than 10,000 ETH have also increased significantly in the last five days.

Source: Glassnode

There was also a significant increase in address activity from 26 June. This was around the same time that receiving addresses began to exceed sending addresses, so more people were seen buying the dip. Furthermore, as of July 7, the latest readings showed that receiving addresses increased to 241,163, while sending addresses were slightly lower at 240,274.

Source: Glassnode

So where does ETH stand?

ETH’s short-term performance suggests healthy demand which has so far supported its price above $1,000. However, the long-term outlook remains in uncertain territory, with regulatory concerns particularly in the vicinity.