While the price of Ethereum (ETH) has been struggling to break the $4,000 psychological mark, a widely followed analyst remains optimistic about the second-largest cryptocurrency.
Pseudonymous crypto analyst Credible Crypto says Ether’s price prospects are looking incredibly bullish after the U.S. Securities and Exchange Commission (SEC) officially closed its investigation into whether Ethereum is a security token.
Can SEC Dropping Probe Send ETH’s Price To New Highs?
On June 19, 2024, the Securities and Exchange Commission shocked the crypto industry by dropping its investigation into Ethereum 2.0 without launching charges against anyone.
The decision came after Consensys reportedly pushed the SEC to clarify ETH’s status as a security, given the regulator’s recent approval of certain spot Ethereum exchange-traded fund (ETF) application filings. Consensys noted that the SEC’s approval of spot Ether ETFs indicated that it had updated its position to categorize ETH as a commodity and not a security under the Howey investment contract test.
SEC’s clearance of Ethereum not only gives supporters a respite from some of the uncertainties surrounding Ether’s classification but also offers a glimmer of hope in an otherwise turbulent regulatory landscape.
Moreover, analyst Credible Crypto believes the regulator’s retreat is a bullish catalyst that could propel ether to a fresh lifetime high. “The SEC backing off ETH is likely the [last] nail in the coffin for bears here,” Credible Crypto opined.
The crypto trader suggests that the chance of Ethereum slipping below $1,600 is quite low as the second-biggest crypto’s support level lies between $2,800 and $3,430.
Ether’s price action could be further buoyed by institutional inflows from the first U.S.-listed spot ETH exchange-traded funds (ETFs), which are expected to debut on exchanges by July 2, according to Bloomberg ETF analyst Eric Balchunas.
ETH To Hit $10,000 By End Of 2024
Meanwhile, technical crypto analyst Yoddha highlighted Ethereum’s current price position on the chart, observing that there’s been some consolidation after the formation of a morning star, which indicates a bullish reversal from the bottom of a downswing.
“Ethereum is holding up the price pretty well and looks ready to go bonkers,” Yoddha postulated on Wednesday. “It will be above $10,000 before the end of the year. Mark my words,” Yoddha added.
At the time of writing, Ether is trading for $3,515. The asset is currently down 27.9% from its all-time high of $4,878.26 in November 2021.