Ethereum’s (ETH) price has plummeted from a weekly high of over $3,600 to $3,374, but market analysts believe the cryptocurrency’s bearish phase may be nearing its end from the most recent regulatory developments.
Crypto analyst and educator, CrediBULL, expressed a strong bullish sentiment for ETH in a recent post on X (formerly Twitter). The analyst noted that recent price actions have solidified his confidence that the lower price region identified in his original chart analysis is now irrelevant.
With developing PA, now confident enough to say I think the lower region from my original chart is out of play.
The SEC backing off $ETH is likely the nail in the coffin for bears here.
I think our green region here holds and $ETH looks good for new ATH. https://t.co/GA6aIc1MB9 pic.twitter.com/bHVfJMlcPB
— CrediBULL Crypto (@CredibleCrypto) June 19, 2024
CrediBULL highlighted the significant impact of the U.S. Securities and Exchange Commission easing its scrutiny on Ethereum. Earlier in the day, the Ethereum development team Consensys disclosed that the SEC’s Enforcement Division had notified it of the closing of its investigation into Ethereum 2.0.
Accordingly, the SEC will not raise charges alleging that sales of ETH are securities transactions. Rumors on this investigation had emerged towards the end of March, attracting significant criticism from the crypto community.
Following the SEC’s approval of Ethereum spot ETFs last month, Consensys sent a letter to the regulator, asking for confirmation on whether the May ETH ETF approvals, based on ETH being a commodity, would lead to closing the Ethereum 2.0 investigation. The agency responded affirmatively and consequently closed its investigation.
Amid this crucial development for Ethereum, analyst CrediBULL noted that this regulatory relief is likely to end the bearish sentiment surrounding ETH.
CrediBULL has also included a chart outlining the potential path for Ethereum to reach the $6,600 range, should Bitcoin maintain its position above $62,000. He suggests that Ethereum’s current price level of approximately $3,500 could represent a solid bottom before initiating a substantial rally.
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