In the wake of the news that the Securities and Exchange Commission (SEC) has filed a lawsuit against Binance and its founder Changpeng Zhao for 13 violations, the cryptocurrency market has been shaken. Amid the upheaval, the price of Ethereum (ETH) has dropped by 3% in the last 24 hours, settling at $1,816. So, what is the anticipated movement for Ethereum?
ETH Price Movement!
ETH did not suffer as heavily from this news as other cryptocurrencies. The altcoin saw a 4.5% drop over the past week, but it’s still up by 51% since the start of the year. Unlike other altcoins, ETH controversially benefitted from not being named as an unregistered security in SEC’s charges against Binance, unlike its competitors such as Cardano (ADA), Algorand (ALGO), Solana (SOL), and Cosmos (ATOM).
As such, once the dark clouds over SEC’s latest legal action dissipate, ETH, particularly with a surge in staking, could find itself rebounding stronger than many other auxiliary tokens.
At its current position, ETH‘s indicators are in a relatively weak alignment with the rest of the market. This includes the relative strength index, which fell below 30 yesterday and is only now starting to slowly rise. Similarly, ETH’s 30-day moving average is sharply falling towards its 200-day average and is expected to drop below the long-term average in a few days, at which point a recovery could be anticipated.
The SEC Impact!
With the support level looking fairly solid around $1,800, it seems unlikely that ETH’s price would fall significantly more than it already has. Unlike Binance Coin (BNB) and other various cryptocurrencies named in SEC’s charges against Binance, a clear path for ETH to recover has been established.
ETH’s absence from the mentioned list indicates that it could potentially avoid any future SEC actions against itself and/or its founders. However, some observers are worried as they highlight the SEC complaint as a mechanism that could trigger an expectation of a price pump in the not-too-distant future for ETH.
On a positive note, commentators express optimism that SEC’s complaint provides a relatively clear blueprint for how cryptocurrency platforms and establishments can avoid offering unregistered securities in the future.
