Ethereum’s native token, Ether (ETH), has surged approximately 4.5% in the last 24 hours, reaching $3,550 on June 19. The catalyst behind this bullish movement is the U.S. Securities and Exchange Commission (SEC), which has announced the conclusion of its investigation into Ethereum.
SEC Ends Ethereum Probe, Boosting ETH Price
The recent uptick in Ether’s price is attributed to the SEC’s decision to close its investigation into Ethereum, removing uncertainty around ETH’s classification as a security.
According to ConsenSys, the SEC’s Enforcement Division notified them of the investigation’s closure, marking a significant victory for Ethereum’s developers, technology providers, and the broader industry.
SEC’s Move Follows ETF Approvals, Boosts ETH Sentiment
In a notable sequence, the SEC’s decision to conclude its investigation coincides with its recent approval of 19b-4 filings by major firms like VanEck, BlackRock, and Fidelity for spot Ether ETFs. These developments pave the way for these ETFs to start trading on exchanges from July 2, as projected by Bloomberg analyst Eric Balchunas. K33 Research forecasts substantial inflows of around $4 billion into these products within the initial five months post-launch, underscoring robust demand for ETH.
Ether Exchanges Holdings Hit 8-Year Low
Simultaneously, data from Glassnode reveals that the collective Ether balance across crypto exchanges fell to its lowest level since July 2016, totaling approximately 12.20 million ETH as of June 18.
The surge in Ether outflows from crypto exchanges has aligned with the cryptocurrency’s price increase, indicating reduced selling pressure and a growing preference for holding ETH in private wallets or decentralized protocols.
For example, the official Ethereum staking address has steadily increased its holdings since its launch in December 2020, now holding over 46.418 million ETH as of June 19—nearly four times the amount held by exchanges.
Despite Ethereum’s Shanghai upgrade in March 2023, which removed the need for ETH stakers to lock their tokens indefinitely, this growth trend continues unabated.
Despite now having the option to withdraw their staked ETH, the majority of users have chosen to keep their tokens staked. This preference highlights the perceived benefits of staking, such as stability and rewards, over selling, suggesting a bullish sentiment for Ether’s price in the upcoming weeks.
ETH price rebounds from a support confluence
ETH price gains today have followed a bounce from a significant technical support confluence near $3,500. This confluence includes its 50-day exponential moving average (50-day EMA), the 0.5 Fibonacci retracement level, and the lower trendline of its current ascending channel trend.
Ether’s target for July seems to be the upper trendline of its ascending channel, converging with the 1.618 Fibonacci extension level around $4,853. This forecast derives from historical rebounds off the lower trendline that have led to comparable price movements.
Alternatively, a significant breach below the lower trendline of the ascending channel could potentially expose ETH to a decline towards its 200-day exponential moving average (EMA), situated near $3,040 by July.