![Ethereum's strong support at this crucial level sets the stage for potential upside](https://s3.tradingview.com/news/image/zycrypto:ba0245795094b-b988a0df9064ea5a34e2c3402822b308-resized.jpeg)
Ethereum (ETH) is a hot topic in the cryptoverse. The crypto asset, which is expected to be next in line for approval of spot exchange-traded funds by the SEC, earlier this week surpassed the $3,000 mark for the first time since April 2022.
Some market observers predict that ETH could easily set a new high this year amid an impending major network upgrade, Dencun.
But investor Fred Krueger isn't impressed. He recently expressed concerns about Ethereum's fundamental trends and potential regulatory hurdles. As such, he advises investors to avoid the second largest cryptocurrency.
Ether Drop Utility
Fred Krueger observed in an article According to Krueger, Ethereum's daily active users (DAU) declined from 120,000 in 2021 to just 66,000 over the past year.
The popular commentator also highlighted the decline in user activity on Ethereum's leading decentralized exchange protocol, Uniswap, citing it as a cause for concern. “The top app, Uniswap V3, only receives 16,000 DAU. I remember in 2020 that number was 60,000 or more,” Krueger said.
However, that hasn't stopped investors from pushing ETH to a market cap of $361 billion, he claimed. He further claimed that ether had become a coin, similar to the canine-themed cryptocurrency Shiba Inu (SHIB).
“It's not particularly cheap ($1.50 per transaction) or fast. If you’re just interested in reward points for casino-style DeFi games or apps – Solana, Avalanche, Near, etc., crush them all,” Krueger continued.
Spot ETH ETF: a pipe dream?
Krueger's criticisms go beyond Ethereum's usefulness and concern the asset's legal prospects in the United States. According to him, there is no chance that Securities and Exchange Commission Chairman Gary Gensler will approve ether spot ETFs in the future.
“I don’t think Gensler will allow an ETH ETF. If you believe in the Tooth Fairy, have fun. I just don't think Gary wants to make his second ETF a massive pre-mine. This sets a very bad precedent.
“Avoid ETH at all costs,” Krueger summarized.
As ZyCrypto Previously reported, brokerage firm Bernstein says there is about a 50% chance that ETH spot ETFs will gain SEC approval by May and an almost certain chance of approval within the next 12 months . Several institutional players have filed applications for these ETH products, including BlackRock, Fidelity and Franklin Templeton. The earliest deadline for the green light is May for VanEck's ETF.