Ethereum price is up today, after its absence from the SEC’s lawsuit against Coinbase and Binance catch traders’ attention.
On June 6, Ethereum’s native token, Ether (ETH), rose nearly 2.25% to around $1,825, compared to its June 5 low at $1,775.
The bounce appeared synchronously with a similar move elsewhere in the crypto market. Interestingly, the move accompanied the U.S. Securities and Exchange Commission’s decision not to call Ethereum a “security” in its lawsuits against Binance and Coinbase.
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 said that proof-of-stake tokens like Ether fall under the category of securities per the “Howey Test.” However, his opinion differs from his predecessor William Hinman, who said Ether is not a security in his 2018 speech.
Also, in April 2023, Gensler sidestepped questions about Ethereum’s status before the U.S. House Financial Services Committee.
And now, the SEC’s omission of Ether in the list of crypto assets it considers security — including the Binance-branded stablecoin BUSD and PoS assets Solana (SOL) and Cardano (ADA) — has boosted its competitive advantage in the layer-one blockchain market.
That is visible in Ethereum’s crypto market dominance (ETH.D) performance since the SEC lawsuit; it rose to 20.7% on June 6, the highest in nine months.
On the other hand, Bitcoin’s market share (BTC.D) has dropped to 47.23%, the lowest since April 2023.
Related:Â Binance net outflows hit $778M on Ethereum since SEC charges: Nansen
Is an extended ETH price rebound ahead?
From a technical perspective, Ether’s price bounce has occurred near a short term support level that constitutes a descending triangle pattern.
A descending triangle is considered 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.
As a result, ETH price could see a run-up toward the triangle’s upper trendline near $1,900. But, it may extend the recovery trend toward $2,100 if the price breaks above the $1,900-resistance. In other words, a 20% rebound in June.
As a note of caution, descending triangles have often appeared at the end of an uptrend, leading to sharp bearish reversals.
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