South Korea could soon follow Hong Kong in legalizing spot Bitcoin exchange-traded funds (ETFs), as the country’s top presidential candidates have expressed pro-crypto positions.

Still, some industry observers remain cautious about the likelihood of near-term regulatory change.

“All three major South Korean presidential candidates support #Bitcoin ETFs and institutional investment,” Ki Young Ju, the founder and CEO of onchain data platform CryptoQuant, wrote in a May 14 X post.

Currently, Bitcoin ETFs and institutional crypto investments are banned in South Korea, meaning that “100% [of the] volume comes from retail,” Ju added.

From left: Democratic Party of Korea presidential candidate Lee Jae-myung, People Power Party presidential candidate Kim Moon-soo and New Reform Party presidential candidate Lee Jun-seok. Source: Ki Young Ju

Related: Bitcoin more of a ‘diversifier’ than safe-haven asset: Report

On May 6, South Korea’s Democratic Party leader Lee Jae-myung promised to legalize spot crypto ETFs, lower transaction fees and “create a safe investment environment so that young people can [build] assets and plan for the future, according to a report from The Korean Economic Daily (KED).

The Democratic Party made similar promises in its 2024 election campaign, including the legalization of spot crypto ETFs, but progress has been delayed, KED reported.

Related: SEC delays Solana ETF as decisions for Polkadot, XRP loom

Candidates back ETFs, but history casts doubt

While the crypto-friendly perspectives of the leading candidates suggest a promising future for digital asset legislation in South Korea, regulation experts remain skeptical.

“The candidates’ pro-crypto pledges to push to legalize spot Bitcoin ETFs and reduce fees signal a potential shift. But history tempers optimism,” Anndy Lian, author and intergovernmental blockchain adviser, told Cointelegraph, adding:

“They will take on similar stances as Hong Kong. Whether the ETFs can perform or not depends on various other factors.”

“A pro-crypto president could drive reform, aligning South Korea with global trends like the US, where Bitcoin ETFs have attracted over billions in net inflows,” Lian said, adding that the Financial Services Commission’s tone also suggested “regulatory openness” for cryptocurrencies.

However, the People Power Party, elected in 2022, also promised to lift the crypto ETF ban and revise the controversial one-exchange-one-bank rule, “but failed to act before President Yoon’s impeachment,” Lian said.

Over in Hong Kong, the first batch of Bitcoin and Ether-based ETFs launched for trading on April 30, 2024, but saw disappointing trading activity compared to their US counterparts, Cointelegraph reported.

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Key takeaways:

Ethereum’s market dominance has hit overbought RSI levels not seen since May 2021, historically followed by major pullbacks.

ETH/USD is showing a bearish divergence on the four-hour chart, hinting at a potential 10–15% price correction.

Despite the near-term risks, some analysts view a pullback as a “buy-the-dip” setup before a possible move toward $3,500–$3,800.

Ether (ETH) has surged over 50% month-to-date in May, vastly outperforming the broader crypto market’s 15.25% gain. The rally has pushed Ethereum’s market dominance (ETH.D) toward the critical 10% threshold for the first time since March.

But the rising dominance accompanies signs of overheating, indicating that Ethereum bulls should not celebrate the rally just yet.

Ether’s RSI most overextended since May 2021

The strong recovery in Ethereum’s crypto market share has pushed its daily relative strength index (RSI) to its most overbought zone since May 2021, raising red flags for traders betting on further upside, at least in the short term.

Historically, such extreme RSI levels on ETH.D have marked the beginning of major pullbacks. One notable instance occurred in early July 2024, when ETH dominance peaked near similar RSI levels.

ETH.D daily performance chart. Source: TradingView

Over the following 315 days, ETH.D dropped by more than 17.5%. The current RSI spike, again above 80, mimics a similar setup, suggesting that Ethereum could be nearing a local top in its market share.

Adding to the bearish outlook, ETH.D remains below its 200-day exponential moving average (200-day EMA; the blue wave). This resistance level has repeatedly capped Ethereum’s dominance during previous recovery attempts.

Previous overbought pullbacks have initially pushed Ethereum’s market share toward its 50-day EMA (the red wave).

The ETH.D metric, therefore, risks declining toward its current 50-day EMA support at around 8.24% by June, suggesting potential capital rotation out of Ethereum markets to other coins in the coming weeks.

Bearish divergence signals 15% ETH price drop

On the four-hour ETH/USD chart, a classic bearish divergence is emerging, where Ethereum’s price continues to print higher highs, but momentum indicators trend lower.

Crypto trader AlphaBTC noted that ETH is showing “three clear drives of divergence,” a setup often preceding trend exhaustion. He added that key Fibonacci levels align with potential support zones, suggesting a pullback could be imminent.

ETH/USD four-hour price chart. Source: AlphaBTC

With ETH hovering near the $2,740 Fibonacci extension, profit-taking pressure may intensify, opening the door for a short-term correction toward lower Fib levels at around $2,330 or even $2,190, down 10%-15% from the current prices.

Independent market analyst Michaël van de Poppe suggests ETH’s decline in the coming weeks could serve as a “buy-the-dip opportunity,” indicating that the cryptocurrency would eventually climb over $3,500.

Related: Altcoins’ roaring returns and falling USDT stablecoin dominance suggest ‘altseason’ is here

Veteran trader Peter Brandt further predicts a “moon shot” rally to over $3,800.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

The French interior minister reportedly plans to meet cryptocurrency professionals in the aftermath of a violent kidnapping attempt on the family of a crypto exchange executive in Paris.

According to a May 14 France24 report, French interior minister Bruno Retailleau has invited crypto professionals to meet him after a brazen attempt to kidnap the daughter and grandson of Pierre Noizat, the co-founder and CEO of French crypto exchange Paymium.

”I will assemble businesspeople working in cryptocurrencies, and we have a few of those in France, at the interior ministry to work with them on their security,” Retailleau reportedly told the Europe 1/CNews broadcaster.

On Tuesday, May 13, three masked men attacked Noizat’s daughter while she was walking in Paris’ 11th district with a man and her son. The attackers tried to force Noizat’s daughter and her son into a white van.

Related: Teens kidnap Las Vegas man at gunpoint, stealing $4M in crypto

Passersby intervened, with one scaring the assailants while brandishing a fire extinguisher before throwing it at them as they fled. The event is now being investigated by local authorities, with the vehicle used being found abandoned nearby on the same day.

En plein Paris, un homme a été violenté par des individus cagoulés, habillés tout en noir. Ils tentaient de l’enlever. Un homme a surgi, extincteur à la main, pour les faire fuir. →https://t.co/P0qV6PR40v pic.twitter.com/9f4r2Gi7ho

— Le Figaro (@Le_Figaro) May 13, 2025

Growing risk for cryptoholders

Jameson Lopp, a cypherpunk and co-founder of self-custodial firm Casa, has created a list on GitHub recording dozens of offline crypto robberies, with 22 incidents of in-person crypto-related theft so far this year. Many in the crypto industry highlight that anonymity is the only way to effectively protect holders and their close circle against so-called “$5 wrench attacks.”

$5 wrench attack explanation. Source: XKCD

Lopp’s list is likely undercounting the total number of attacks targeting people over their involvement in the crypto industry. A University of Cambridge study in September 2024 found that these so-called “wrench attacks” are often underreported due to revictimization fears.

Related: How a $243 million crypto heist led to a real-world kidnapping

France saw its fair share of cases

Paris is also no stranger to these attacks. Earlier this month, Paris police freed the father of a crypto entrepreneur who was held for several days in connection with a 7 million euro ($7.8 million) kidnapping plot.

At the start of this year, David Balland, co-founder of leading crypto hardware wallet manufacturer Ledger, was abducted from his home in central France. He was held captive until a police operation on the night of Jan. 22 secured his release.

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