[Ethereum expected to rise as regulatory concerns ease]
The price of Ethereum (ETH) fell to $3,374 from weekly highs over $3,600, but market analysts believe this bearish phase may be coming to an end following recent regulatory developments.
Crypto analyst and educator CrediBULL expressed strong bullish sentiment towards ETH in a recent X (formerly Twitter) post. He noted that recent price action has solidified his confidence that the lower price areas identified in the original chart analysis are no longer relevant.
CrediBULL highlights the significant impact of the U.S. Securities and Exchange Commission’s (SEC) easing of scrutiny on Ethereum. Ethereum development team Consensys revealed that the SEC Enforcement Division has informed it to end its investigation into Ethereum 2.0. Accordingly, the SEC will not bring charges that the ETH sales were securities transactions. Rumors of the investigation emerged around the end of March and prompted widespread criticism from the crypto community.
Following the SEC’s approval of an Ethereum spot ETF last month, Consensys sent a letter to the regulator requesting confirmation whether the May ETH ETF approval based on ETH as a commodity would lead to the closure of the Ethereum 2.0 investigation. The agency responded in the affirmative and closed the investigation.
Amid this major development for Ethereum, CrediBULL notes that this regulatory relief could end the bearish sentiment surrounding ETH. He also included a chart outlining a potential path for Ethereum to reach the $6,600 range if Bitcoin remains above $62,000. He believes that Ethereum’s current price level of around $3,500 may represent a solid bottom before a substantial rebound can be initiated.
