ETH Price Shoots 5% As SEC Ends Ethereum Investigation, Whale Activity Jumps
As per the latest report, the U.S. Securities and Exchange Commission (SEC) has an interesting surprise for the Ethereum community that has positively impacted the Ethereum price.
SEC Ends Investigation into Ethereum
The SEC has informed ConsenSys that they are willing to end the investigation into Ethereum’s status as a security. This comes just ahead of the highly anticipated spot Ethereum ETF approval. Following this development, Ethereum (ETH) price has surged by 5%, nearing the $3,600 level.
Whale Activity Increases
Shortly after the SEC's announcement, an Ethereum whale purchased 5,603 ETH. On-chain data from Santiment shows that a prominent whale pulled a total of 16,604 ETH, worth $58.6 million, from crypto exchange Binance over the past 19 days. The whale bought the coins at an average value of $3,600 and made an additional large purchase an hour after the SEC's announcement.
ConsenSys' Legal Battle
ConsenSys reached out to the SEC regarding the Ethereum 2.0 investigation. In a letter sent earlier this month, ConsenSys sought clarification on whether approving the spot Ethereum ETF would close their ongoing investigation.
While ensuring they continue their legal efforts, ConsenSys sought a court declaration that MetaMask Swaps and Staking features do not violate securities laws. They highlighted the need for clear guidelines to help crypto technologies and innovation thrive. Despite receiving a Wells Notice earlier, the SEC has not yet charged ConsenSys.
ETH Price Surge
From weekly lows of $3,381, Ethereum's price bounced back strongly. The ICO whale may have been selling Ethereum recently, but other big players have scooped the supply from exchanges. This buying enthusiasm has contributed to the ETH price surge.
In conclusion, the SEC's announcement to end the Ethereum investigation has led to a positive price reaction and increased whale activity, bringing regulatory clarity to the crypto space.
