ETH price is up today, why?
On June 6, the value of Ether (ETH), the native token of Ethereum, rose by almost 2.25% to reach around $1,825, compared to its low of $1,775 on June 5.
This increase coincided with a similar movement in the rest of the cryptocurrency market. Interestingly, this increase happened at the same time as the US Securities and Exchange Commission (SEC) decided not to classify Ethereum as a “security” in its lawsuits against Binance and blockchain.
10/ SEC alleges that the following assets are securities: BNB, BUSD, Solana, Cardano, Polygon, Filecoin, Cosmos, Sandbox, Decentraland, Algorand, and Axie Infinity. pic.twitter.com/oMz98NB6gh
— Henri Arslanian (@HenriArslanian) June 6, 2023
The SEC steers clear of Ethereum, for now
In September 2022, SEC Chairman Gary Gensler stated that tokens like Ether that operate on a proof-of-stake system are classified as securities under the “Howey Test.” However, his opinion differs from his predecessor, William Hinman, who stated that Ether was not a security in his 2018 speech.
Furthermore, in April 2023, Gensler avoided answering questions about Ethereum’s status before the US House Financial Services Committee.
Now, the SEC’s decision not to include Ether on the list of crypto assets it considers to be securities, which includes Binance’s stablecoin BUSD and proof-of-stake assets Solana (SOL) and Cardano (ADA), has increased its competitive advantage in the layer-one blockchain market.
This is evident in Ethereum’s market dominance (ETH.D) in the cryptocurrency market since the SEC lawsuit; it rose to 20.7% on June 6, the highest it has been in nine months.
On the other hand, Bitcoin’s market share (BTC.D) has dropped to 47.23%, the lowest it has been since April 2023.
Related: Binance net outflows hit $778M on Ethereum since SEC charges: Nansen
Is an extended ETH price rebound ahead?
From a technical perspective, the bounce in Ether’s price occurred near a short-term support level that represents a descending triangle pattern.
A descending triangle is a bullish continuation pattern in an uptrend. It resolves after the price breaks above the falling trendline resistance with strong volumes and rises by as much as the triangle’s maximum height.
Therefore, the price of ETH could increase towards the upper trendline of the triangle, which is near $1,900. However, if the price breaks above the $1,900 resistance, the recovery trend could extend towards $2,100, which is a 20% rebound in June.
It is worth noting that descending triangles have often appeared at the end of an uptrend, leading to sharp bearish reversals.
