Ethereum
Ethereum Price Surpasses $3,000 Mark Amid Unexpected Court Ruling
Ethereum Price Surpasses $3,000 Mark Amid Unexpected Court Ruling
Ethereum (ETH), the second largest cryptocurrency by market capitalization, saw a notable price rise over the last 7 days, with a 5.36% increase that brought its price closer to the $3,100 level. Analysts attributed the rise to slowing U.S. retail sales data for April, raising expectations of a possible interest rate cut by the U.S. Federal Reserve to boost Economic Growth.
The rise of ETH was also influenced by a court ruling and an indictment from the US Department of Justice. THE charge, unsealed on May 15, accused two individuals of electronic fraud and money laundering through manipulation of the Ethereum blockchain. The court document highlights that Ethereum functions as a decentralized blockchain without the need for a trusted intermediary, thereby increasing investor confidence in ETH.
This came after the United States Securities and Exchange Commission issued a Wells Notice to Robinhood, a trading platform, regarding alleged securities violations related to crypto listings and custodian operations. The verdict contradicts regulators’ classification of ETH as a security, as it highlights the absence of management or entrepreneurial efforts by others within the Ethereum network.
The US SEC is expected to announce its final decision on VanEck and ARK Invest’s Ethereum ETF spot application on May 23 and 24 respectively. With analysts predicting approval chances below 35%, the case for classifying Ether as a security instrument has weakened, contributing to the rally above $3,050 on May 17.