Ethereum Price: 2 Reasons Why ETH Price is Rising ?

Business

Will Ethereum Price Hit $10,000 If The SEC Changes Tune? – Crypto News

Published

2 years ago

April 30, 2024

Dripp

The approval of Bitcoin ETFs in the US in January this year broadened the outlook of the crypto market for most investors. Attention quickly shifted to Ethereum with companies swiftly filing with the Securities and Exchange Commission (SEC) to offer spot ETH ETFs. For a short while, Ethereum price surged alongside Bitcoin price. Although the latter achieved a new all-time high of $73,837 according to data by CoinGape and CoinGecko, ETH topped out at $4,091.

Ethereum Price Market Update As Volatility Rages

The post-Bitcoin halving crypto environment remains in a precarious state. An initial climb in crypto prices waned, paving the way for the current correction. Bitcoin price changed at $60,715 on Tuesday during US hours, painting a 3.5% drop in the last 24 hours.

Ethereum, the second-largest crypto had been hammered the most, losing a modest 5.6% of its value to $2,984. A 6.6% fall in the market cap to $361 billion reflects the intense sell-off in April while the 8% spike in the 24-hour trading volume hints at the growing interest in Ether among traders.

Losing support at $3,000 exposes Ethereum price to more selling pressure at the outset of May. The position of the smart contract token below two bull market indicators — the 20-day Exponential Moving Average (EMA) and the 50-day EMA (blue and red lines on the chart) could further trigger more declines this week.

A death cross pattern confirmed on April 17 when the 20-day EMA flipped beneath the 50-day EMA is another bearish signal that’s hard to ignore.

Similarly, the Relative Strength Index (RSI) reveals that sellers have more influence at the time of writing. Therefore, it would be imperative to anticipate continued losses to $2,800, and if push comes to shove $2,500.

Despite the correction, the RSI is not oversold, suggesting that there’s room for more downward movement.

Nevertheless, the same four-hour chart brings attention to a wedge pattern. If Ethereum price rebounds before breaking below the lower trendline support, chances of a targeted recovery will increase significantly.

A falling wedge is considered a bullish pattern occurring after a substantial surge in the price of an asset followed by a drop, or consolidation. As the trendlines narrow, bulls fight to retake control.

Traders will look for a breakout above the upper trend line, which often points to a breakout target equal to the distance between the widest points of the pattern. A 24% increase in price could drastically change Ethereum’s outlook.

Is Ethereum A Security?

US Regulators are undecided on Ethereum’s status — whether a security or a cryptocurrency. With the expectations of a spot ETF gaining momentum, this determination is crucial and likely to set a precedent for many digital assets.

A recent report by Fox Business producer Eleanor Terret revealed that Gary Gensler and the agency he heads, the SEC believed that Ethereum passed as security, but only for some time.

This revelation comes amid the ongoing Consensys lawsuit against the SEC. In the report, Terret said that Gensler and the SEC “appear to have believed for at least a year” that Ethereum was an “unregistered security trading out of compliance with current federal regulations.”

An investigation dubbed “Ethereum 2.0” is being carried out by the SEC intending to unearth details of Ethereum being a security, especially on the sales of Ether from 2018.

Former executives of the SEC like Director of Corporation Finance Bill Hinman are on record stating that Ethereum was not a security. Hence, the ongoing investigation could throw this stance in the wind, further opening a can of worms for the SEC.

On the other hand, if the “Ethereum 2.0” investigation affirms Ether’s status as a cryptocurrency, it could potentially bolster its position in the industry.

At the very least, it will increase the probability of spot Ethereum ETFs approval — a move that could blast ETH price above the previous all-time high. A clear path could also be opened for Ethereum to close the gap to $10,000 bolstered by increased adoption among retail and institutional investors.