Ethereum has successfully overcome its regulatory challenges as the SEC concluded its investigation into ETH. This news has boosted buying confidence in ETH, even with bearish pressure on the Bitcoin price chart. Additionally, there is a notable increase in on-chain metrics, indicating potential for further upward movement in the coming hours.
SEC’s Closure of Investigation Boosts On-chain Metrics
In a recent update shared on X, Ethereum developer Consensys announced that the SEC’s Enforcement Division has closed its investigation into Ethereum 2.0. This decision signifies that the SEC will not pursue charges regarding ETH sales as securities transactions, marking what Consensys described as a significant victory for Ethereum developers and community.
Also read: Crypto Market Chaos! Spot Ether ETFs Launch Expected to Increase Volatility
Consensys made this announcement following a letter dated June 7, requesting the investigation’s termination, especially after the SEC’s approval of spot Ether exchange-traded funds (ETFs) in May, based on ETH being categorized as a commodity.
This news has sparked increased buying interest in Ethereum in recent hours. According to data from Coinglass, Ethereum’s open interest has surged by 4% in the past 24 hours, reaching $15.8 billion. Moreover, the total liquidation amount exceeded $33 million during this period, with liquidations evenly split between both sides of the market.
According to IntoTheBlock data, there has been a notable recovery in the volume of large transactions. This metric rose sharply from a low of $2.05 billion to a recent peak of $5.8 billion. This increase indicates that Ethereum’s increased volatility was driven by surging interest from large-scale investors. Additionally, Lookonchain reported a massive accumulation of 5,603 Ethereum (worth $19.6 million) today by a prominent ETH Whale.
The current long/short ratio has surged above 1, reaching 1.206. This suggests increasing bullish dominance, with approximately 55% of total positions anticipating a continuation of the upward trend.
What’s Next For ETH Price?
Ether bounced back from the low of $3,350 as buyers triggered intense buying activity. This pushed the price above immediate Fib channels and ETH price retested buyers’ patience at $3,600. However, bears are strongly defending a surge above higher EMA trend lines. As of writing, ETH price trades at $3,524, surging over 3.5% in the last 24 hours.
Sellers are strongly defending the EMA100 trend line. A drop below the 50-day SMA at $3,379 could shift the advantage to the bears. The ETH/USDT pair might decline towards the crucial support level of $3,172. If bulls fail to defend this level, we might see a decline toward support at $2,850, where strong buying interest from bulls is anticipated.
Conversely, if the price rebounds from current levels or bounces off the 50-day SMA, it would indicate bullish buying interest. This scenario would increase the likelihood of a rally above the 100-day EMA. In such a case, the pair could target $3,740.
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