Ethereum is currently following the market trend of Bitcoin and maintaining a price above $1,800. This level is still bullish for the digital asset, which is only around 60% down from its all-time high. However, there is a threat to Ethereum’s stability that could send its price spiraling back down toward $1,000.
What Could Send Ethereum Back To $1,000?
This week, the United States Securities and Exchange Commission (SEC) brought lawsuits against top exchanges Binance and Coinbase with more regulatory action expected to come towards crypto firms as time goes on. One important part of the lawsuit was the SEC naming some cryptocurrencies as securities.
The regulator hinted that this list was not exhaustive but included Cardano (ADA) and Solana (SOL), among others. Interestingly, while Ethereum’s status has been a hot topic of debate over the last year regarding whether it should be classified as security or not by regulators; it wasn’t named in this list.
However, what’s significant about these cryptocurrencies’ names being mentioned is they are proof-of-stake networks – something Ethereum transitioned to back in 2020. This sparked speculation that although ETH wasn’t listed as a security yet; it could very well be on their radar for future classification if things change.
If Ethereum gets listed as a security token by SEC at any point in time soon enough- then cryptocurrency enthusiasts fear that Ether may become an easy target for them just like Ripple did when sued back in 2020 leading up-to massive crash upto 60% loss value overnight! A repeat event like such would easily see ETH fall below even lower than current levels ($1000).
ETH price resting above $1,800 | Source: ETHUSD on TradingView.com
However, the SEC has not made any indications of going after Ethereum. Right now, it seems to have its hands full with Ripple, Binance and Coinbase; all of which are vocal about fighting the regulator in court as they object to charges brought against them.
ETH Price Still Holding Firmly
Even amid speculations that Ethereum would end up being classified as a security token by regulators- Ether is still maintaining a bullish outlook for mid-to-long-term investors. It’s currently tradingSponsored Product above its 100-day moving average ($1758), indicating investor confidence in purchasing assets at prices higher than three months ago.
As long as bulls continue their momentum; there’s potential for ETH to maintain levels above $1800 before next crypto market run-up begins leading towards clearing out past resistance level upto $2000 mark!
At the time of writing this article (July 2022); ETH is changing hands at a current rate of $1839 (-0.35% down within last 24 hours) with weekly losses around -1.22%.
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