Ethereum has successfully risen above and maintained its position above the critical resistance level of $3500, bolstered by positive news surrounding network developments.
The ETH price is now steadily approaching a key target, potentially paving the way towards the next significant milestone at $4000.
SEC Suspends Ethereum 2.0 Investigation: Cosensys Responds
A significant victory for Ethereum developers occurred when the US Securities and Exchange Commission (SEC) halted its investigation into Ethereum 2.0. Initially, the SEC had approved an inquiry into the buying, selling, and trading activities of individuals and entities related to Ethereum. Recently, Cosensys, the blockchain development firm behind Metamask, announced that the SEC had informed them of the investigation’s withdrawal.
Source: X
In a detailed statement, Cosensys explained that the SEC’s notification was in response to their inquiry regarding whether the approval of a spot ETH exchange-traded fund (ETF) occurred before or after the investigation was terminated. The SEC confirmed the closure of the investigation in response. Despite this development, Cosensys emphasized their ongoing commitment to advocating for fairness for developers, technology providers, and traders affected by what they perceive as the SEC’s unjust crackdown on cryptocurrencies.
“We continue our fight,” stated the post, which also called for a legal declaration asserting that Metamask’s swaps and staking activities are not in violation of securities laws.
Ethereum (ETH) Price Analysis After SEC Investigation News
Following news of the SEC withdrawing its investigation into Ethereum, ETH experienced a surge in momentum, surpassing previous bearish trends. While Bitcoin struggles around $65,500, ETH has climbed above $3,500. However, to reach beyond $4000, Ethereum needs to clear specific resistance levels.
TradingView
The recent bullish movement has propelled ETH closer to the critical resistance zone between $3,663 and $3,703. Breaking through this zone is crucial for further price gains. Technical indicators are positive, with the MACD showing reduced selling pressure and nearing a bullish crossover. Similarly, the DMI indicates a bullish trend, though the declining ADX raises some concerns.
Despite these indicators, Ethereum may face challenges in reaching the $4000 milestone as the current rally appears to be losing strength. Additionally, trading volume lacks strong bullish signals, suggesting market participants remain cautious about future trends. Historically, even positive events like network upgrades have not sustained long-term price increases, contributing to traders’ cautious outlook.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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