-AD-
-AD-
HomeNewsEthereum's Rocky Road: SEC Woes and Price Dips Unpacked

Ethereum’s Rocky Road: SEC Woes and Price Dips Unpacked

- Advertisement -
  • Ethereum’s pricing and regulatory position are impacted when the SEC internally labels it as a security while remaining ambiguous in public.
  • The market reacts, exhibiting notable price changes and trade volume, to Ethereum’s regulatory difficulties and Merge transition.

Significant information has surfaced from a lawsuit that Consensys filed against the SEC, indicating that the agency had already classified Ethereum as a security in an internal order as of March 2023, expanding on what was earlier reported by ETHNews.

SEC Chair Gary Gensler has been evasive regarding Ethereum’s classification, even if his remarks at MIT in 2018 seemed to suggest otherwise. This information runs counter to the SEC’s previously indecisive public position.

Emplications of Ethereum’s “Merge”

The SEC is subjecting Ethereum’s “Merge” to close examination, or what is essentially a shift from proof-of-work to proof-of-stake.

Due to this change, Gensler has suggested that cryptocurrencies using proof-of-stake might need to be considered securities, which would certainly throw the future regulatory status of Ethereum into question.

These regulatory uncertainty have caused the market to react cautiously. According to CMC data, the ETH price has dropped by 4.26% in the last 24- hours and by 4.01% during the previous week, currently trading at $3.045,01. After a trading volume of almost $15 billion, Ethereum is now 15% lower than it was a month ago, indicating a wider trend.

The industry is closely monitoring the SEC’s decision regarding the approval of applications for spot Ethereum ETFs.

The view from investment bank JP Morgan indicates a 50/50 possibility of approval or rejection, with a judgment due by late May. Notable asset managers such as Grayscale, BlackRock, and Franklin Templeton are awaiting conclusions, in line with what ETHNews previously disclosed.

Expert Opinion

Regarding Ethereum’s present state in the market, well-known crypto analyst Ali Martinez has observed that $3,200 represents “brick wall resistance.”

According to the Ali tweet, at this price point, there are roughly 2.43 million addresses holding 5.14 million ETH, indicating strong potential resistance for price movements above this level.

Disclaimer: ETHNews does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products, or other materials on this page. Readers should do their own research before taking any actions related to cryptocurrencies. ETHNews is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods, or services mentioned.
Syofri
Syofri
Syofri is an active forex and crypto trader who has been diligently writing the latest news related to the digital asset sector for the past six years. He enjoys maintaining a balance between investing, playing music, and observing how the world evolves. Business Email: [email protected] Phone: +49 160 92211628
RELATED ARTICLES

LATEST ARTICLES