Ethereum’s native token, Ether (ETH), has jumped by about 4.5% in the past 24 hours, hitting $3,550 on June 19. Surprisingly, the main driving force behind this bullish surge is the U.S. Securities and Exchange Commission (SEC), which has decided to end its investigation into Ethereum.
SEC ends Ethereum probe ahead of potential ETF approvals
Today’s Ether price gains appear in response to the SEC’s decision to end its investigation into whether ETH is classified as a security.
“The Enforcement Division of the SEC has notified us that it is closing its investigation into Ethereum 2.0,” Ethereum developer ConsenSys announced in a June 19 post on X, adding that it’s a “major win for Ethereum developers, technology providers, and industry participants.”
Interestingly, the SEC’s decision follows its approval of the 19b-4 filings from VanEck, BlackRock, Fidelity and other Wall Street firms, allowing spot Ether ETFs to be listed and traded on their respective exchanges.
Bloomberg analyst Eric Balchunas anticipates the Ether ETFs to go live for trading starting July 2. K33 Research further predicts that these investment products will attract $4 billion worth of inflows in the first five months after launch, indicating a strong underlying demand for ETH tokens soon.
Ether balance on exchanges plunges to 8-year low
The total number of Ether held by all crypto exchanges dropped to over 12.20 million ETH on June 18, its lowest since July 2016, according to data resource Glassnode.
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.
This growth persists despite Ethereum’s Shanghai upgrade in March 2023, which eliminated the requirement for ETH stakers to lock their tokens indefinitely.
Related: MetaMask enables pooled staking for Ethereum holders
The fact that most users haven’t withdrawn their staked ETH, despite now having the option, shows a preference for the benefits of staking, like stability and rewards, to selling. This indicates bullish sentiment for Ether’s price in the coming weeks.
ETH price bounces from a support confluence
ETH price gains today appears after testing a technical support confluence at around $3,500. This confluence comprises its 50-day exponential moving average (50-day EMA; the red wave), 0.5 Fibonacci retracement level, and the lower trendline of its prevailing ascending channel trend.
Ether’s upside target for July appears to be the upper trendline of its ascending channel, aligning with the 1.618 Fib line at approximately $4,853. This projection is based on previous rebounds from the lower trendline that resulted in similar price movements.
Conversely, a decisive breakdown below the ascending channel’s lower trendline may increase ETH’s possibility to fall toward its 200-day EMA (the blue wave) at around $3,040 in July.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
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