Should you buy Ethereum now that it has been exempted by the SEC as a security in the Binance lawsuit?

The price of Ethereum (ETH) has decreased by 3% within the past 24 hours, reaching $1,816 as the cryptocurrency market responds to the news that the SEC has filed 13 charges against Binance and its founder Changpeng Zhao.

ETH has not been as negatively impacted as other cryptocurrencies by this news, with its value reducing by only 4.5% in the past week, but still showing a 51% increase since the beginning of the year.

In contrast to other altcoins, ETH has potentially benefited from not being listed as an unregistered security in the SEC’s lawsuit against Binance. Other cryptocurrencies, such as Cardano (ADA), Algorand (ALGO), Solana (SOL), and Cosmos (ATOM), have been mentioned in the lawsuit and have suffered as a result.

Therefore, once the dust settles on the SEC’s legal action, ETH could potentially recover more strongly than many other utility tokens, particularly with an increase in staking.

Ethereum Price Prediction Following SEC’s Exemption of ETH as a Security in Binance Lawsuit – Time to Buy?

ETH’s indicators are currently in a weak position in line with the rest of the market.

Its relative strength index (purple) declined below 30 yesterday and is slowly creeping back up. Similarly, ETH’s 30-day moving average (yellow) is sharply dropping towards its 200-day average (blue), and it is likely to fall below the longer-term average in a few days, indicating a rebound.

ETH’s support level (green) has held up fairly well around $1,800, suggesting that it may not fall much further in price.

Unlike BNB and various other coins mentioned in the SEC’s lawsuit against Binance, ETH has been provided with a clear path towards recovery.

The following altcoins have been cited as securities in the SEC’s complaint:

  • SOL
  • ADA
  • MATIC
  • FIL
  • ATOM
  • SAND
  • MANA
  • ALGO
  • AXS
  • COTI

These tokens have fallen harder than many others in the market, with Sandbox and Axie Infinity, for example, decreasing by 14% and 9% respectively in the past 24 hours.

ETH was not mentioned in the list above, implying that it may avoid any future SEC action against it and/or its founders.

However, some observers are concerned that the SEC complaint highlights burning as a mechanism that creates an expectation of profit, which may result in it turning on ETH in the near future.

On the other hand, the expectation of profit is not the sole factor that qualifies something as a security, meaning that it is not certain that ETH will face its own data with the SEC.

In fact, some commentators are optimistic that the SEC’s complaint provides a clear outline on how cryptocurrency platforms and organizations can avoid offering unregistered securities in the future.

Regardless, ETH has been less severely affected by the SEC’s latest legal action, and it is expected to recover strongly in the coming weeks and months.

As we have previously reported, it successfully introduced staking withdrawals last month, and Ethereum staking has actually increased as a result. This increase in staking will inevitably reduce the circulating supply of ETH, suggesting that the altcoin’s price will recover steadily in the near and distant future.

ETH’s current price of around $1,800 is expected to rise to $1,900 in the next few weeks, before passing $2,000 in the next few months.

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Hedging Bets with Other High-Growth Alts

The prospects for ETH are good, but there is still some uncertainty. Its recovery may take several months to develop gradually.

As a result, some investors may prefer to buy newer altcoins that have more potential in the short term.

These altcoins include presale tokens, and some of the best ones are likely to experience big rallies once they are listed on exchanges for the first time.

One example of such a presale token is Wall Street Memes (WSM), a new cryptocurrency associated with the meme stocks movement that emerged from the 2021 GameStop and AMC rallies.

Wall Street Memes has already raised more than $4.4 million in its presale, which started only last week.

As a meme token, WSM has no real fundamentals other than the community that will support it. Given that it has already raised a large sum of money so quickly, it seems that its community of holders will be a healthy one.

This suspicion is also supported by the fact that the Wall Street Memes Twitter account now has more than 225,000 followers, all of whom are potential WSM buyers.

WSM could therefore rally big once it lists. Investors can join its presale by visiting its official website.

One WSM token is currently selling at a discounted price of $0.0274, although this will climb to $0.03370000 by the time the sale reaches its 30th stage.

Visit Wall Street Memes Now