Ether Price Surges 4.5% Amid SEC Investigation Conclusion and Rise in Staking Preferences
Summary:
Ether (ETH), Ethereum's native asset, experienced a 4.5% surge, reaching $3,550 on June 19, largely attributed to the U.S. SEC's decision to conclude its investigation into Ethereum. The SEC's verdict has paved the way for spot Ether ETFs listings and trading on various major platforms. Meanwhile, total Ether held by crypto exchanges fell to an 8-year low, indicating a growing preference to hold ETH in private wallets or decentralized protocols. Despite the freedom to withdraw their staked ETH, most users have chosen to keep staking, signaling a bullish sentiment for Ether's price in the upcoming weeks.
Ether (ETH), the native asset of Ethereum, has seen a 4.5% surge over the last 24 hours, reaching a price of $3,550 on June 19. Unexpectedly, the U.S. Securities and Exchange Commission's (SEC) decision to wrap up its investigation into Ethereum is fuelling this upswing.
SEC's curtain call on its probe into Ethereum has propped the price hike today. The regulatory body was investigating if ETH can be classified as a security. ConsenSys, an Ethereum developer, disclosed on June 19 via a publication on X that, "The Enforcement Division of the SEC has concluded its investigation into Ethereum 2.0", a decision hailed as a significant victory for Ethereum developers and industry participants.
Taking a cue from the SEC's most recent verdict, Wall Street firms like VanEck, BlackRock, Fidelity have obtained clearance for their 19b-4 filings, setting the stage for spot Ether ETFs listings and trading on their respective platforms.
Eric Balchunas, analyst at Bloomberg, projects that the Ether ETFs will be available for trading as of July 2. K33 Research further predicts that these instruments will draw around $4 billion in investments within five months post-launch, suggesting an anticipated demand for ETH tokens.
In an interesting turn of events, the quantity of Ether held by crypto exchanges fell to an all-time 8-year low of over 12.20 million ETH on June 18, a level not seen since July 2016, according to Glassnode, the data services provider.
There has been an uptick in Ether's exodus from crypto exchanges in synchronization with the asset's price appreciation, suggesting a dip in selling pressure and a rising trend of holding ETH in personal wallets or decentralized protocols.
The official staking address for Ethereum, for example, has been padding its holdings continuously since its inception in December 2020 and currently holds in excess of 46.418 million ETH - almost quadruple the quantity held by exchanges.
The increasing trend continues even after the Shanghai upgrade in Ethereum in March 2023, which did away with the necessity for ETH stakeholders to lock their tokens indefinitely. Despite now having the option to withdraw their staked ETH, the fact that the majority haven't signifies a preference for the perks of staking, such as stability and rewards, over selling - a positive signal for Ether's price trajectory in the coming weeks.
Today's uptick in the price of ETH came after it touched a confluence of technical supports around $3,500. This confluence includes its 50-day exponential moving average, the 0.5 Fibonacci retracement level and the lower trendline of its ongoing ascending channel trend.
For July, Ether's upward target seems to be the rising channel's upper trendline, coinciding with the 1.618 Fib line at around $4,853. This prediction is built on past rebounds from the lower trendline that spurred similar price movements.
On the flip side, a firm dip below the ascendant channel's lower trendline may increase chances of ETH sliding towards its 200-day EMA (the blue wave) around $3,040 in July.
Any trading or investment moves carry inherent risks and should be made after conducting your own research. This report does not offer any investment advice or recommendations.
Published At
6/19/2024 2:18:34 PM
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