Ethereum has cleared a significant hurdle in its regulatory journey, as the SEC concluded its investigation into Ethereum 2.0. This decision from the SEC’s Enforcement Division indicates that Ethereum’s sales will not be treated as securities transactions, marking a major win for Ethereum developers and its community, according to an update by Consensys, a leading Ethereum developer.
This positive regulatory outcome has sparked renewed confidence among investors, boosting buying activity in Ethereum despite downward pressure seen in Bitcoin prices. On-chain metrics also show promising signs, suggesting potential upward movement in the near term.
In the last 24 hours, Ethereum’s open interest has surged by 4% to reach $15.8 billion, as reported by Coinglass. Additionally, liquidations totaling over $33 million occurred during this period, evenly distributed across both sides of the market.
The decision follows the SEC’s approval of spot Ether exchange-traded funds (ETFs) in May, recognizing ETH as a commodity, further supporting Ethereum’s market stability and investor sentiment.
What does the future hold for Ethereum’s price?
Ethereum has shown a significant recovery in large transactions, as per IntoTheBlock data, with volumes rising sharply from a low of $2.05 billion to a recent peak of $5.8 billion. This surge reflects heightened interest from institutional investors, contributing to increased volatility in Ethereum’s market. Additionally, Lookonchain reported a substantial accumulation of 5,603 Ethereum (equivalent to $19.6 million) today by a prominent ETH Whale.
The current long/short ratio has exceeded 1, reaching 1.206, indicating growing bullish sentiment. Approximately 55% of all positions anticipate further upward movement in ETH’s price.
Looking ahead, Ether has rebounded from a low of $3,350 with strong buying pressure pushing it above immediate Fibonacci levels, testing resistance around $3,600. However, resistance from higher EMA trend lines is proving formidable for bulls. At the time of writing, ETH is trading at $3,524, marking a 3.5% increase in the last 24 hours.
Sellers are actively defending the EMA100 trend line, and a break below the 50-day SMA support at $3,379 could shift momentum in favor of bears. The ETH/USDT pair might then target critical support at $3,172. Further downside could see a decline towards stronger support at $2,850, where significant buying interest is anticipated.
Conversely, a bounce from current levels or from the 50-day SMA would signal renewed bullish momentum. This scenario could pave the way for a rally above the 100-day EMA, potentially targeting $3,740 as the next resistance level.
