After falling almost 3% to slide to $1,816 following the news of the lawsuits from the Securities and Exchange Commission (SEC) against Binance and its founder Changpeng Zhao, Ethereum managed to recover. It is showing an advance of 3.51% over the past 24 hours and is currently trading around $1,880.
ETH hasn’t been hit as hard as other cryptocurrencies by this news, and is still up 51% year-to-date.
Indeed, in the indictment against Binance, the SEC does not consider ETH an unregistered security. Its rivals such as Cardano (ADA), Algorand (ALGO), Solana (SOL) and Cosmos (ATOM) were included in this list and their performance suffered more as a result.
As such, once things get back to normal, ETH could find itself in an enviable position against other utility tokens. This possibility is even higher if we consider the factor related to the increase in staking.
Ethereum Price Predictions: Does the SEC’s Decision Signal It’s Time to Buy ETH?
ETH indicators are all in a subdued position right now, in line with the rest of the market.
These include its Relative Strength Index (purple), which dipped below 30 yesterday and has only just started to slowly recover.
Similarly, ETH’s 30-day moving average (yellow) has fallen sharply towards its 200-day average (blue). However, once it falls below the longer-term average, then a rebound will be possible.
ETH held up well at its support level (green) around $1,800. A drop below this level can be ruled out and its bullish trajectory could hold over the next few days.
And unlike BNB and other altcoins whose legal status remains unclear, ETH enjoys a clear path to recovery.
Besides BNB and Binance USD (BUSD), the altcoins cited as securities in the SEC complaint are: SOL, ADA, MATIC, FIL, ATOM, SAND, MANA, ALGO, AXS, COTI.
It should be emphasized that the above tokens saw a much bigger drop compared to other altcoins : The Sandbox and Axie Infinity, for example, fell 14% and 9% respectively in the day yesterday.
The omission of ETH therefore means that it could escape any future action by the SEC against it and/or its founders.
However, some observers are concerned that the SEC views burning as a mechanism creating an expectation of profit. On the other hand, an expectation of profit is not enough to qualify an asset as a security (in which case BTC would be considered a security).
In fact, some commentators are optimistic that the SEC complaint provides a relatively clear overview of how crypto platforms and organizations can avoid offering unregistered securities in the future.
Either way, ETH was less affected by the SEC’s latest legal action. A recovery, which is already looming, is possible in the weeks and months to come.
As we reported, the latest Ethereum update successfully introduced staking withdrawals last month. And since the rollout of this feature, Ethereum staking has increased significantly.
This increase will inevitably reduce the circulating supply of ETH. In conjunction with a increase in ETH outflows off exchangesthis suggests a steady rise for the price of the altcoin.
ETH is expected to return to $1,900 in the next few weeks and could break above $2,000 in the next few months.
Buy Ethereum
Hedge your positions with other high growth altcoins
While ETH’s future outlook remains positive, there is some uncertainty hanging over it. A real recovery could therefore be gradual and take several months.
Accordingly, some investors may prefer newer altcoins that show above-average short-term potential.
These altcoins include pre-sale tokens. The best ones are likely to see a big increase in value after listing on exchanges.
An example of such a pre-sale token is Wall Street Memes (WSM), a new cryptocurrency associated with the meme stock movement that emerged from the GameStop and AMC phenomena of 2021.
Wall Street Memes has already raised over $4.4 million during its pre-sale which only started last week.
As a meme token, WSM has no real fundamentals other than the community that will support it. Given that he has already raised a significant amount of money so quickly, it seems that his community of holders will be healthy.
This hypothesis is also supported by the fact that the Wall Street Memes Twitter account now has over 225,000 subscribersall of whom are potential buyers of WSM.
WSM could therefore experience significant gains after its listing. Investors can join its presale by visiting its official website.
1 WSM token is currently selling at a discounted price of $0.0274. This price will climb to $0.03370000 by the time the sell-off reaches its 30th leg.
Check Out Wall Street Memes
This article does not represent investment advice in any way. The information provided here should not be used as the basis for making financial decisions. Investing in cryptocurrency involves risk and can lead to significant losses. You should only invest what you can afford to lose and do your own research before making any investment decisions.