Key facts: Days ago, the SEC announced that it will stop investigating Ethereum 2.0. This could trigger ether (ETH) and several cryptocurrencies. The debate over whether ether (ETH), Ethereum's native cryptocurrency, is or is not a security is about to come to an end. According to Galaxy Digital, a crypto asset investment firm, “it will soon be confirmed that Ethereum is not a security,” it highlights in a report. The decision comes after the Ethereum-based decentralized application development platform, Consensys, will file a lawsuit against the United States Securities and Exchange Commission (SEC) last April 25. There he alleged that attempts to classify ETH as a security through SEC investigations are an “illegal seizure of authority over ETH.” This prompted the SEC to indicate last week that it would stop investigating whether ether is an unregistered security. The SEC investigation into Ethereum began shortly after the network will implement a new governance model known as proof-of-stake (PoS), in September 2022. This change, which introduced staking, reportedly gave the SEC a new justification for attempting to classify ether as a security. SEC Chairman Gary Gensler went so far as to point out that features of Ethereum's software could lead to it falling under his supervision. By this he was referring to the PoS model and the figure of staking, through which cryptocurrency holders can obtain financial rewards for validating transactions on the network. The problems faced by the organization led by Gensler and his approach to digital assets were evident when approving the ether funds. Furthermore, he implied that for the SEC, ether is a commodity and not a security, although this has not been confirmed by the agency. The SEC's current stance on Ethereum paves the way for spot ether ETFs finish receiving approval so that they can be listed on the stock market. All this serves as a boost for both the price of ether and other cryptocurrencies.
ETFs wait for the SEC
ETFs were approved last May, but only forms 19b-4. The regulator did not authorize its launch on that occasion. For this to happen, the agency must give the green light to the S-1 forms. Precisely, the companies requesting ETF authorization delivered all the requested information last Friday. “The upcoming S-1 approvals for these products will confirm the SEC’s view that ETH is not a security,” Galaxy notes. It also makes sense to the company that the SEC has formally abandoned its investigations into the people and entities involved in the purchase or sale of ETH for violations of securities law. For now, everything now remains in the hands of the SEC, who must inform issuers of any final changes and their final approval. According to Bloomberg analyst Eric Balchunas, The date to announce the verdict is next July 2as reported by BitcoinDynamic.
Bullish outlook for Ethereum and other cryptocurrencies
The SEC's decision regarding Ethereum and ETFs is a major bullish catalyst to consider. These financial products would make it easier to invest in ether, which could significantly increase demand for the cryptocurrency. As more investors put money into these funds, the entities that manage the ETFs will need to acquire more cryptocurrencies to maintain adequate support. This, in turn, will reduce the amount of ether available on the open market, which may lead to an increase in price due to limited supply. An uptrend for ETH is something that traders are anticipating. Currently, there is a concentration of purchase options that expire at the end of September at the strike level of $4,000. This positive sentiment, reflected in the options markets, indicates that the price is likely to reach new all-time highs. The highest price in the history of ETH is $4,871, a price it reached in November 2021. Ethereum could also benefit other cryptocurrencies due to its ranking. If the SEC determines that ETH is not a security, it could set a precedent for the classification of other cryptocurrencies, meaning that they are less likely to be considered securities. This could create a positive ripple effect throughout the cryptocurrency market, boosting investor confidence and increasing demand for other altcoins. According to what was expressed by the market analyst who identifies himself as Mustache on the social network There is reason to believe that altcoin season is approaching. «Just a few days ago, the 3W Gaussian Channel changed from red to green,» as seen in the following graph. This is a technical indicator used in cryptocurrency price analysis. It is based on the normal distribution, also known as the Gauss curve, to represent volatility and price movement over time. A change from red to green, as indicated by the analyst, refers to a transition in the price trend. When the price of the asset exceeds the upper band of the channel, it is considered a bullish signal and is represented with green. «As far as I know, the feeling in 2020 was very similar to this time. A few weeks later, one of the biggest altcoin seasons began. «The calm before the storm,» he added.