As Ethereum is headed toward clearing one of its biggest targets of $4000 in its value the question in everyone’s mind seems to be the same.
Will the coin be able to successfully pass this price target and will it be able to retain its value in the future?
In this article, we will attempt to address all of these questions by examining what led to the sudden price increase in the prices of Ethereum, the reasons for this change, and look at predictions about its future run.
First of all, let’s look at some of the recent developments that happened in the world of Ethereum in the section below.
the recent developments in the world of Ethereum
Most of the cryptocurrency investors and analysts will be aware of the recent developments that happened regarding the approval of spot ETHs by the Securities Exchange Commission (SEC).
The recent move by the SEC has given the Ethereum community a lot of hope regarding the prospects of the coin.
The latest update that we hear is of the SEC’s suspension of the inquiry that it has been carrying out into the Ethereum 2.0 network all throughout this time.
The news of the SEC’s decision to close the investigation was published in its media platform by the blockchain development company “Consensys” which was behind the creation of the crypto wallet project “Metamask”.
In a detailed thread published by the company, they said that the notification by the SEC was in response to a letter sent to the regulatory agency enquiring whether the approval of spot Ethereum ETF was done so after the closure of its ongoing investigation against Ethereum 2.0.
The investigation was carried out to look into the buying and selling of the Ethereum coin by individuals and other entities.
The response by the SEC was in support of their theory and confirmed it with a positive reply.
Even in the light of the good news the company in their detailed notification also assured its members that they will still continue their fight to prove that their Metamask swap and staking mechanism does not violate the securities law of the SEC
Now that we have learned about the recent happenings in the world of Ethereum. Next, we will look more into what impact the announcement had on Ethereum’s market run and how the community responded to the news.
What was the impact the news had on the price of Ethereum and what was the response from its community?
The news of the decision by the SEC has sent the price of ETH to recover from its long periods of stagnation and regain a bit of its momentum toward its recovery.
The news has sent a wave of confidence and relief among investors along with the market responding by pushing the price of the coin above one of its set targets of $3500.
Currently, the Ethereum Coin is valued near $3,576.24 and has given hope to investors that the coin will pass its next critical target between $3,663 and $3,703 soon enough.
The current market sentiment and technical indicators suggest that the coin is going in a bullish path with the Moving Average Convergence/Divergence(MACD) indicating a drop in the selling pressure due to the current bullish trend.
Most of the market analysts suggest the coin under a strong buy call with some suggesting a neutral view on the market run of the coin.
Taking all of these into account it seems like the major concern regarding the coin comes from the plunging levels of Average Directional Index (ADX) which shows the potential for the traders to reduce the risk of their investment while increasing the profit margin.
Final Thoughts
There is no doubt that the price surge and the news update have sent the Ethereum market and its investors into a frenzy with many looking at it as just a temporary relief from its long-term bearish run while others look at it as the beginning of the Ethereum token’s journey to occupy its place right next to the Bitcoin as its close replacement.
One thing we can observe from the outlook of the seasoned investors is that many of them seem to be thrown off by the similar patterns that occurred with many of the other coins like Bitcoin where the value usually goes for a large downward trend right after breaking through such targets.
Whatever the case may be, one thing can be said with definite certainty.
For the coin to reach its new target of $4000 there will have to be a larger push from the part of its investors and community which will have to be complemented by the coin’s wider acceptance from similar regulatory
