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Ethereum Price Prediction: SEC's Ended Investigation Could Ignite a Bull Run to $5.5K

Key Points:

• The SEC has concluded its investigation into whether Ether is a security, a significant positive development for Ethereum.

• The SEC concluded its investigation into Ethereum 2.0, which Consensys views as a victory.

• Despite this success, Consensys is continuing its lawsuit for broader legal clarity on cryptocurrencies.

• The SEC's actions are perplexing; they investigated Ethereum but approved ETFs based on it.

• The decision paves the way for spot Ether ETFs to launch in July.• Ethereum is forming a classic cup and handle pattern, suggesting a potential price breakout towards $5,500 by August.

Source: Google

Ethereum's native token, Ether (ETH), is exhibiting a classic cup and handle pattern, a bullish signal often highlighted by technical analysts. This positive technical outlook is bolstered by the SEC ending its investigation into Ethereum's status as a security, potentially pushing ETH's price towards $6,000 in the coming weeks. The cup and handle pattern, a bullish continuation pattern, indicates a potential upward price movement. The "cup" resembles a rounded bottom, signifying consolidation and accumulation, while the "handle" is a downward-sloping channel, indicating a brief period of profit-taking before the next leg up. This pattern develops beneath a common resistance line, the "neckline," and is confirmed when the price decisively breaks above it, potentially rising as much as the pattern's maximum depth.

As of June 19, Ether was forming the handle, eyeing a breakout above its neckline resistance around $4,000.

Ethereum ETF Launch – When’s the Big Day?

Investors are eagerly awaiting the debut of spot Ethereum ETFs. Bloomberg’s ETF expert, Eric Balchunas, has marked July 2nd as a potential launch date, which could open new investment avenues for Ethereum.

Who’s in the Game? The road to ETF approval has been challenging. The SEC has approved the 19b-4 forms for eight major players, including BlackRock, Fidelity, and VanEck, allowing them to proceed with their ETF plans. The SEC has also provided feedback on the S-1 filings, indicating progress. SEC Chair Gary Gensler hinted at a possible approval by September, reinforcing the likelihood of Ethereum ETFs soon entering the market.

Market Projections

Understanding market projections for Ethereum ETFs can be transformative for traders and investors.

VanEck’s Price Projection VanEck, a significant asset management firm, predicts Ethereum could reach $22,000 by 2030, based on projected $66 billion in “free cashflows.”

Institutional Capital Inflows The launch of spot Ethereum ETFs is expected to attract substantial institutional investment. Geoff Kendrick from Standard Chartered estimates inflows could range from $15 billion to $45 billion in the first year alone, highlighting the significant market impact of these ETFs.

Impact on ETH Prices

Price Rally Prediction The anticipation of spot Ethereum ETFs approval has the crypto community excited. QCP Capital, a trading firm in Singapore, predicts a 60% increase in ETH prices, similar to the surge seen with spot Bitcoin ETFs' approval in January.

Market Reaction and Price Fluctuations Since the announcement on June 13, the market has been volatile. ETH dipped from $3,558 to $3,464, but rebounded by 0.69% to $3,517. Despite these fluctuations, the market remains cautious, reflecting mixed sentiment about Ethereum ETF approval.

Approval Process Updates

SEC Chair’s Statements During a budget hearing on June 13, SEC Chair Gary Gensler mentioned that the Ethereum ETF approval process could conclude by summer, with potential approval by September. This has generated considerable buzz in the crypto world.

Price Impact and Market Sentiment Despite concerns about the prolonged approval process, Gensler's comments have stirred optimism. Following the June 13 announcement, ETH's price experienced some volatility but showed signs of recovery. This mixed sentiment underscores the cautious optimism surrounding Ethereum ETF approval.

Ethereum technical chart
Source: Google

ETH/USD Daily Price Chart (Source: TradingView)

If approved, ETH's price target for August could be around $5,500. Conversely, a break below the handle’s lower trendline would invalidate the bullish scenario, potentially pushing the price toward its 200-day exponential moving average (200-day EMA) at around $3,040.

Ethereum is Not a Security: SEC Admits Defeat

The SEC has ended its investigation into whether Ether is a security. On June 19, Ethereum developer Consensys announced that the SEC's Enforcement Division had closed its investigation into Ethereum 2.0. This means the SEC will not charge that sales of ETH are securities transactions, a significant win for the Ethereum community.

The SEC's decision followed a letter from Consensys on June 7, requesting an end to the investigation after the regulator approved spot Ether ETFs in May. Consensys senior counsel Laura Brookover shared the SEC’s response, confirming no enforcement action would be recommended.

This decision follows the SEC's approval of 19b-4 filings from major firms, allowing spot Ether ETFs to be listed. Bloomberg analyst Eric Balchunas predicts that these ETFs will begin trading on July 2.

Ethereum Price Prediction K33 Research predicts these investment products could attract $4 billion in inflows within the first five months, increasing the likelihood of ETH reaching $5,500 by August. Investors moving their ETH holdings to private wallets from exchanges suggest a long-term bullish outlook for Ethereum. Selling Ethereum (ETH) in India? Try A2ZCrypto for a Quick and Easy Experience!

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With the SEC ending its investigation and the potential launch of Ethereum ETFs, Ethereum is poised for significant growth. The cup and handle pattern, coupled with these positive fundamentals, could propel ETH to new heights, with a target of $5,500 by August. Investors should stay vigilant and monitor these developments closely.

Disclaimer: Cryptocurrency Investment

Investing in cryptocurrencies, including Bitcoin, Ethereum, and other digital assets, carries a high level of risk and may not be suitable for all investors. Cryptocurrency values can be highly volatile, with the market experiencing significant fluctuations over short periods. Potential investors should be aware that they could lose some or all of their investment.

Before investing in cryptocurrencies or related financial products, such as cryptocurrency ETFs, it is crucial to conduct thorough research and understand the unique characteristics and risks associated with these assets. Consider seeking advice from a qualified financial advisor who understands your individual financial situation and risk tolerance.



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