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

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As a seasoned crypto investor with a keen interest in the Ethereum price movement, I’m closely monitoring the current market situation. The approval of Bitcoin ETFs in the US was an exciting development that brought renewed attention to the crypto space, particularly Ethereum. However, the subsequent surge in prices was short-lived, and both Bitcoin and Ethereum have since experienced a correction.

As a researcher studying the crypto market, I’ve observed that the approval of Bitcoin ETFs in the US this January expanded the perspective of many investors regarding the potential growth of the cryptocurrency sector. In response, there was a notable shift in focus towards Ethereum as numerous companies moved to file applications with the Securities and Exchange Commission (SEC) for spot Ethereum ETFs. For a brief period, both Ethereum and Bitcoin prices experienced a significant surge. Bitcoin reached a new record high of $73,837, according to CoinGape and CoinGecko data, while Ethereum peaked at $4,091.

Ethereum Price Market Update As Volatility Rages

As a researcher studying the cryptocurrency market post-Bitcoin halving, I’ve observed that prices initially surged but have since experienced a correction. Specifically, Bitcoin’s price dipped by 3.5%, reaching $60,715 during US trading hours on Tuesday.

In simpler terms, Ethereum, the second largest cryptocurrency, experienced a significant drop of 5.6%, bringing its value down to $2,984. This decline resulted in a reduction of 6.6% in Ethereum’s market capitalization, now standing at $361 billion. The intense selling pressure in April is suggested by this decrease, while the surge in trading volume by 8% within the last 24 hours indicates heightened trader interest in Ether.

At a price level of $3,000, Ethereum may encounter significant selling pressure to begin May, as it loses support in this region. The absence of backing from two key bull market indicators – the 20-day Exponential Moving Average (EMA) and the 50-day EMA – could exacerbate potential drops during this week. (The chart illustrates these indicators with blue and red lines respectively.)

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

As a crypto investor, I’ve noticed an ominous development in the market: on April 17, the 20-day Exponential Moving Average (EMA) crossed below the 50-day Simple Moving Average (SMA), creating what’s known as a “death cross” pattern. This technical indicator suggests that the short-term trend has turned bearish and could potentially lead to further price declines, making it a signal that’s hard for me to ignore.

At present, the RSI indicates that selling pressure is stronger than buying pressure, suggesting potential further declines towards $2,800, with a possible support level at $2,500 in case of a more pronounced downtrend.

Although the correction, the RSI hasn’t yet signaled an oversold condition, implying further potential for price decrease.

As an analyst examining the four-hour Ethereum price chart, I’ve noticed a wedge pattern emerging. Should the price rebound prior to breaching the lower trendline support, the likelihood of a substantial recovery becomes more promising.

After a significant price increase for an asset, a falling wedge pattern emerges as a bullish sign. This occurs when there is a decline or consolidation in price, followed by narrowing trendlines. During this time, buyers attempt to regain control of the market.

As a researcher studying market trends, I would advise traders to keep an eye on Ethereum’s price action reaching beyond its upper trendline. Such a breakout can potentially indicate a target price equal to the difference between the pattern’s extreme highs. A 24% increase in Ethereum’s value could significantly shift its market outlook.

Is Ethereum A Security?

US Regulators remain undecided on whether Ethereum should be classified as a security or a cryptocurrency. This decision holds significant importance as it could establish a precedent for the regulatory status of numerous other digital assets, particularly with the growing anticipation of a spot Ethereum Exchange-Traded Fund (ETF).

According to a recent finding by Fox Business producer Eleanor Terrett, the Securities and Exchange Commission (SEC), led by Gary Gensler, once considered Ethereum a security. However, this classification was not permanent.

This disclosure emerges during the persistent ConsenSys legal battle with the SEC. In the document, Terret expressed that Gensler and the SEC seemed to harbor this belief for over a year: Ethereum functioned as an “unregistered security” being exchanged in defiance of existing federal regulations.

The Securities and Exchange Commission (SEC) is conducting an inquiry, which they’ve named “Ethereum 2.0,” to gather information about whether Ethereum should be classified as a security, with a focus on the sale of Ether tokens from the year 2018.

Previous leaders of the Securities and Exchange Commission (SEC), such as Bill Hinman, the former Director of Corporation Finance, have publicly expressed the view that Ethereum does not constitute a security. However, the current investigation could potentially challenge this perspective, adding complexity to the SEC’s stance on Ethereum.

From a research perspective, if my exploration of “Ethereum 2.0” confirms Ether’s identity as a cryptocurrency, it might significantly strengthen its standing within the industry.

As a crypto investor, I strongly believe that the approval of Ethereum ETFs (Exchange-Traded Funds) is a significant event we should all keep an eye on. This approval could significantly boost Ethereum’s price and potentially surpass its previous all-time high. The clear path to $10,000 for Ethereum would become more evident with increased adoption among retail and institutional investors once the ETFs are launched.

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2024-04-30 20:34