The cryptocurrency market is currently navigating complex security laws, creating 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 propelled Ethereum to a critical point in its price trajectory. Currently, the price of Ethereum is fluctuating near a crucial level, creating a make or break scenario in the market.
Ethereum whales can create a selling situation
The activities of a prominent Ethereum whale, with an estimated $738 million worth of ETH, has puzzled even experienced market analysts. This person recently moved 450K ETH to an address associated with the cryptocurrency exchange, Coinbase.
This move has sparked curiosity and concern, especially since such a substantial transaction could have a significant impact on the ETH market if these assets were sold.
In addition, the US Securities and Exchange Commission (SEC) maintains the position that all cryptocurrencies, with the exception of Bitcoin, are securities. The regulator’s recent crackdown on crypto exchanges has extended to strike services, which it wants to stop.
This situation could drive more staked ETH away from exchanges and towards Lido, the leading liquid staking provider. While this may seem beneficial, it poses significant risks to the Ethereum ecosystem. On June 13, Ethereum proponents at “Bankless” raised concerns about Lido and called for action to prevent its monopoly on ETH from staking.
Continued SEC enforcement against exchanges is expected to push pegged Ethereum further towards Lido. Already last week, a notable increase was observed in Coinbase’s wagered ETH redemptions following the regulator’s lawsuit, and this may soon put selling pressure on the price chart.
What can you expect from ETH Price Next?
Ether tried to recover, but the modest rebound indicates bears are benefiting from any slight rally. The bears further solidify their positions by pulling the price below the $1,730 immediate support level. If the bears manage to push the price below $1,700, it could be the start of a more substantial correction. There is a small support at $1,610, but if this level collapses, the drop could reach as high as $1,500.
Currently, the ETH price is consolidating near $1,720-$1,750, which indicates that buyers are doing their best to prevent the ETH price from falling below the EMA20. At the time of writing, ETH price is trading at $1,740, up more than 0.1% in the past 24 hours.
On the bullish side, if ETH/USD price breaks above the current consolidation range at $1,779, it would indicate that bulls are vigorously defending the support level. A rise above the resistance line could pave the way for a potential upward move towards USD 1,910.