Technical indicators suggest Ethereum ($ETH), the world’s second-largest cryptocurrency by market capitalization, could see its price climb above $5,400 this year, according to data shared by a cryptocurrency analyst.
The analysis, based on the Mayer Multiple oscillator, which is calculated “as the ratio between price, and the 200-day moving average” points to the possibility of Ether reaching the upper band of the indicator, as reported.
Ethereum is at the time of writing trading at $3,300 after losing over 10% of its value over the past week amid a wider cryptocurrency market downturn that has seen Bitcoin plunge from a new all-time high above $73,400 to around $62,800 at the time of writing.
Ethereum’s value has recently plunged partly as the U.S. Securities and Exchange Commission (SEC) has reportedly started investigating whether to classify it as a security, with multiple companies having received subpoenas related to the probe.
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The SEC’s move casts doubt on the potential approval of spot Ethereum exchange-traded funds this year, which would come after the regulator greenlit the trading of spot Bitcoin exchange-traded funds that helped the cryptocurrency market rally materialize.
The SEC’s investigation involves demanding documents and financial records from firms regarding their dealings with the Switzerland-based Ethereum Foundation, the non-profit overseeing the blockchain’s governance and development. Sources familiar with the subpoenas said the investigation began after Ethereum’s shift to a Proof-of-Stake network in September 2022.
Coinbase’s Chief Legal Officer Paul Grewal, as reported, has bashed the SEC’s investigation in a strongly-worded response, where he refused the implication that Ethereum’s status is in question. He stressed that millions of Americans hold ETH, underscoring its significance within the crypto space since 2015.
Per Grewal, the SEC is contradicting itself, as senior SEC officials like Director of Corporation Finance William Hinman have previously acknowledged that ETH is not a security. Grewal went further, referencing SEC Chair Gary Gensler’s own Congressional testimony (in July 2018, which was before he became the SEC Chair) classifying ETH as a commodity rather than a security.
Featured image via Unsplash.
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- Source: https://www.cryptoglobe.com/latest/2024/03/key-technical-indicator-suggests-ethereum-eth-price-could-top-5400-this-year/
