Ether (ETH) has surged back above $3,500 following news that the United States Securities and Exchange Commission has concluded its investigation into whether ETH should be classified as a security.
Trading at $3,493 until Consensys announced on June 19 that the SEC would be closing its probe, the cryptocurrency community hailed this development as a significant milestone for the industry.
Consensys stated, “The Enforcement Division of the SEC has informed us that it is wrapping up its investigation into Ethereum 2.0.” In response, Ether saw a 1.4% increase to $3,541 within 20 minutes, surpassing the critical $3,500 mark that has been closely monitored by traders. As of the time of writing, Ether is valued at $3,531.
The $3,500 level has been pivotal for Ether’s price movements, serving as a key support level over the past month. The positive reaction to Consensys’ announcement suggests that investors are more confident and relieved of concerns regarding potential securities law violations related to ETH transfers on the network.
Consensys further stated, “This implies that the SEC will not press charges claiming that ETH sales are securities transactions,” leading to widespread celebrations among crypto enthusiasts. Delphi Ventures founding partner Tom Shaughnessy described it as a “significant victory for Ethereum,” while CoinFund president Christopher Perkins emphasized its importance for the crypto ecosystem.
In response to the news, Ether whales demonstrated their confidence by making substantial purchases, with blockchain analysis firm Lookonchain reporting a whale acquiring 5,603 ETH, valued at approximately $19.6 million.
This positive development comes shortly after the SEC approved spot Ether exchange-traded funds (ETFs) in the U.S., raising hopes that the final stage of approval for the applicant’s Form S-1 registration statements is progressing smoothly. SEC Chair Gary Gensler anticipates that the commission will greenlight the filings “sometime over the course of this summer.”
It is important to note that this article does not provide investment advice. Readers are advised to conduct their own research and assessment before making any investment decisions.