ETH price outlook and why is it poised to withstand SEC

Today, the cryptocurrency markets are experiencing significant volatility due to recent events involving the U.S. Securities and Exchange Commission (SEC). The SEC has launched legal actions against two cryptocurrency exchanges, causing major cryptocurrencies like Bitcoin, Ethereum to be affected. Although when it comes to Ethereum – not quite.

The SEC’s actions came after a U.S. judge ordered the regulatory body to respond within seven days to a 2022 petition for “regulatory clarity” on how existing securities laws might apply to cryptocurrencies. This has added a level of uncertainty that is impacting the market. And still, Ethereum seemed to swiftly recover from a large dip that we saw at the start fo the week.

In fact, Ethereum has been performing quite well, with a nearly 65% rally in 2023 so far. This surge is attributed to the successful implementation of the Shanghai and Capella upgrades, which have significantly improved Ethereum’s blockchain performance, security, and efficiency.

So what is next for Ethereum and what should we expect from the ETH price in the coming months? Let’s find out.

ETH’s firm stand

Brace yourselves for an exhilarating journey with Ethereum as it demonstrates a firm stand at the $1.8K level, buoyed by three compelling indicators!

Despite the looming shadow of the SEC, Ethereum appears to be holding its ground with a promising outlook. ETH has shown itself to be a tenacious player, demonstrating an unwavering determination to secure the $1,800 mark.

The recent dip of ETH price to $1,780 following the SEC’s action against crypto exchanges Binance and Coinbase didn’t send Ether bulls running for the hills. Instead, it brought a gleam of optimism as the price held steadfast above the 67-day support line.

ETH/USDT 4 hours-chart on Binance | Source: TradingView

Some believe the rebound in Ether’s price might stem from its absence in the SEC’s list of securities in the Binance and Coinbase cases. While this doesn’t completely rule out a potential brush with the SEC, it’s currently just a speculative theory with no solid grounds. Meanwhile, SEC chairman Gary Gensler’s silence on Ethereum’s status keeps the suspense alive.

But let’s shift our focus to the bright side – the positive indicators reflected in Ether’s price action, network data, and investor sentiment.

Ethereum’s decentralized applications (Dapps) received a subtle push with Total Value Locked (TVL) bouncing back to a robust 14.6 million ETH on June 6. There’s also a glimmer of hope in the form of a 4% uptick in active addresses interacting with Ethereum’s DApps, a heartening sight despite the persistent high gas fees.

If investors were wary of Ether’s capacity to maintain the $1,800 support, this would be mirrored in the ETH futures contract premium and inflated costs for protective put options. However, that’s not what we’re seeing.

Even with rising regulations, Ether derivatives metrics remain unfazed. Typically, ETH futures contracts in healthy markets show a 4 to 8% annualized premium, known as contango. Despite the retest of the $1,780 level on June 6, this was not enough to sway the big players into a bearish sentiment. Furthermore, ETH price prediction engines of Gate.io still predict a strong year ahead for the largest smart contracts based blockchain.

The 25% delta skew, which gauges market fear by comparing similar call and put options, also leans towards a neutral state. After a brief spike indicating bearishness, the metric made a quick recovery following the bounce to $1,880.

In summary, the three indicators – the TVL bounce, the surge in Dapps active addresses, and the minor impact on Ether derivatives markets – are signaling a strong resilience for Ethereum. Network usage data remains vibrant, and the recent dip didn’t manage to unnerve professional traders, according to derivatives metrics.

With these encouraging signs, Ether bulls seem to have successfully deflected a potential downturn. So, let’s stay tuned for Ethereum’s continued performance as it charts its exciting course above $1,800!

ETH price at a glance

Despite the market’s turmoil this week, Ethereum (ETH) has shown remarkable resilience, maintaining a strong stand at the $1.8K level. It has quickly bounced back from the dip and is set to continue on a positive trajectory, meaning that we should see further rise in the assets value. This of course is not an investment advice, but all signs point to a healthy recovery.

Ethereum’s performance and value have been significantly boosted by the successful implementation of the Shanghai and Capella Hard Fork upgrades. These upgrades have enhanced Ethereum’s mainnet performance, security layers, and efficiency, and have made Ethereum a more attractive blockchain with cheaper and faster transactions. They have also facilitated the withdrawal of staked ETH, leading to a net inflow of 179,500 ETH (worth approximately $375 million) into crypto exchanges in just four days after the upgrades. These developments have led to a near 65% rally for Ethereum in 2023.

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