The cryptocurrency market is currently navigating through complex security law issues, causing price volatility for many digital assets. Ethereum (ETH), the second-largest cryptocurrency, is particularly affected. The situation has escalated with the recent revelation from the Hinman documents suggesting that Ether is not considered a security. This, combined with positive Consumer Price Index (CPI) data, has led Ethereum to a critical point in its price trajectory. Currently, Ethereum’s price is hovering near a crucial level, creating a ‘make or break’ scenario in the market.
Ethereum Whales May Create a Selling Situation
The activities of a prominent Ethereum whale, holding an estimated $738 million in ETH, have left even experienced market analysts puzzled. This individual recently moved 450K ETH to an address linked to the cryptocurrency exchange, Coinbase.
This action has sparked curiosity and concern, primarily because such a substantial transaction could have a significant influence on the ETH market if these assets were to be sold.
Moreover, the U.S. Securities and Exchange Commission (SEC) maintains a stance that all cryptocurrencies, with the exception of Bitcoin, are securities. The regulator’s recent crackdown on crypto exchanges has extended to staking services, which it aims to halt.
This situation could drive more staked ETH away from exchanges and towards Lido, the leading provider of liquid staking. While this may seem beneficial, it carries substantial risks for the Ethereum ecosystem. On June 13, Ethereum proponents at ‘Bankless’ raised concerns about Lido, advocating for measures to prevent its monopoly over ETH staking.
The ongoing SEC enforcement against exchanges is expected to further drive staked Ethereum towards Lido. A notable increase in staked ETH redemptions from Coinbase was already observed last week following the regulator’s lawsuit, and it may soon put a selling pressure on the price chart.
What to Expect from ETH Price Next?
Ether attempted a recovery, but the modest rebound indicates that bears are capitalizing on every slight rally. The bears are further solidifying their positions by pulling the price below the immediate support level of $1,730. If bears become successful in pulling the price below $1,700, it could signal the onset of a more substantial correction. There’s minor support at $1,610, but if this level succumbs, the drop could extend to $1,500.
Currently, the ETH price is consolidating near $1,720-$1,750, hinting that buyers are making an effort to prevent the ETH price from dropping below the EMA20. As of writing, ETH price trades at $1,740, surging over 0.1% in the last 24 hours.
On the bullish side, if the ETH/USD price breaks above the current consolidation range at $1,779, it would suggest that bulls are vigorously defending the support level. A surge above the resistance line could pave the way for a potential upward movement toward $1,910.
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