Ethereum
Ethereum Price Gains Momentum Above $3,500 Amid Growing Whale Interest: What’s Next for ETH?
Ethereum successfully overcame its regulatory challenges as the SEC concluded its investigation into ETH. This news boosted buyer confidence in ETH, even with bearish pressure on the Bitcoin price chart. Additionally, there is a notable increase in on-chain metrics, indicating potential for further upward movement in the coming hours.
SEC Closure of Investigation Improves On-Chain Metrics
In a recent update shared on X, Ethereum developer Consensys announced that the SEC’s Enforcement division has closed its investigation into Ethereum 2.0. The ruling means the SEC will not pursue charges regarding ETH sales as securities transactions, marking what Consensys described as a significant victory for Ethereum developers and community.
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Consensys made the announcement following a letter dated June 7, requesting that the investigation be closed, particularly following the SEC’s approval of Ether spot exchange-traded funds (ETFs) in May, on the basis of the category of ETH as a commodity.
This news has sparked increased interest in Ethereum purchases in recent hours. According to Coinglass data, Ethereum open interest jumped 4% in the last 24 hours, reaching $15.8 billion. Additionally, the total liquidation amount exceeded $33 million during this period, with liquidations split equally between both sides of the market.
According to data from IntoTheBlock, there has been a notable recovery in large transaction volume. This figure has risen sharply from a low of $2.05 billion to a recent high of $5.8 billion. This increase indicates that Ethereum’s increased volatility is due to growing interest from large-scale investors. Additionally, Lookonchain today reported a massive accumulation of 5,603 Ethereum (worth $19.6 million) by a major ETH whale.
The current long/short ratio has surged above 1, reaching 1.206. This suggests increasing bullish dominance, with around 55% of total positions anticipating a continuation of the uptrend.
What’s next for the ETH price?
Ether rebounded from the $3,350 low as buyers triggered intense buying activity. This pushed the price above the immediate Fib channels and ETH price once again tested the patience of buyers at $3,600. However, the bears are strongly defending a rise above the higher EMA trendlines. At the time of writing, the ETH price is trading at $3,524, up over 3.5% in the last 24 hours.
Sellers strongly defend the EMA100 trendline. A decline below the 50-day SMA at $3,379 could shift the advantage to the bears. The ETH/USDT pair could decline towards the crucial support level of $3,172. If the bulls fail to defend this level, we could see a decline towards the support at $2,850, where strong buying interest from the bulls is expected.
Conversely, if the price rebounds from current levels or rebounds from the 50-day SMA, this would indicate bullish buying interest. This scenario would increase the likelihood of a rally above the 100-day EMA. In such a case, the pair could target $3,740.