Key Points
- The US SEC is reportedly investigating Ethereum Foundation, potentially classifying Ethereum as a security.
- Despite regulatory scrutiny, the price of Ethereum remained relatively steady, even witnessing an 11.63% surge.
The US Securities and Exchange Commission (SEC) has reportedly launched an investigation into the Ethereum Foundation.
Ethereum’s Regulatory Scrutiny
The SEC is considering whether to classify Ethereum (ETH) as a security, issuing subpoenas to companies associated with the foundation. The focus is on their links to the foundation that oversees the blockchain’s development.
The investigation follows Ethereum’s shift from a Proof-of-Work to a Proof-of-Stake consensus mechanism, prompting the SEC to examine its implications.
Ethereum’s Price Performance
Despite this regulatory development, Ethereum’s price remained steady. Surprisingly, Ethereum’s price increased by 11.63% within 24 hours.
During this period, Ethereum’s price exceeded $3,500, leading to the liquidation of numerous short positions. Approximately $48.9 million worth of short positions were liquidated within 24 hours.
At the time of writing, Ethereum was trading at $3,492.85. Ethereum’s price has repeatedly tested the resistance of $3555. If it regains momentum and tests this resistance again, it may surpass this level in the future, potentially reaching the $4,000 mark.
However, Ethereum’s price trend over the past few weeks has shown multiple lower lows and lower highs. The recent price surge has not been significant enough to indicate a trend reversal.
If the downward trend continues, Ethereum’s price could drop to the $3.137 support level. The price movement of Ethereum in the coming days will be crucial for traders as it will determine the larger trend Ethereum will follow.
Ethereum’s network growth has seen a significant increase, suggesting new addresses are showing interest in Ethereum. This increased interest could further fuel Ethereum’s bullish momentum.
Additionally, the velocity of Ethereum transfers has also increased, indicating a higher frequency of transactions.
