Why is Ethereum (ETH) price up today?

On June 6th, Ether (ETH), the native token of Ethereum, experienced an increase of approximately 2.25%, pushing its value up to around $1,825 from its June 5th low of $1,775.

The bounce coincided with a similar move in the crypto market, and interestingly, it happened at the same time as the U.S. Securities and Exchange Commission’s ruling that Ethereum was not a “security” in its legal cases against Binance and Coinbase.

The SEC steers clear of Ethereum, for now

In September of 2022, Gary Gensler, the Chairman of the SEC, declared that tokens such as Ether, which utilize proof-of-stake, are considered securities under the Howey Test. This opinion is different from that of his predecessor, William Hinman, who spoke in 2018 and stated that Ether was not a security.

In April 2023, Gensler evaded queries concerning Ethereum’s standing before the U.S. House Financial Services Committee.

Now, the SEC’s decision not to include Ether in the list of crypto assets it deems security – which includes the Binance-branded stablecoin BUSD and PoS assets Solana (SOL) and Cardano (ADA) – has given it an upper hand in the layer-one blockchain market.

The SEC lawsuit has had a visible effect on Ethereum’s crypto market dominance (ETH.D); on June 6, it reached its highest point in nine months at 20.7%.

Bitcoin’s market share (BTC.D) has reached its lowest point since April 2023, currently standing at 47.23%.

Net outflows from Binance totaling $778 million on Ethereum have been recorded since the SEC charges were brought forth by Nansen.

Is an extended ETH price rebound ahead?

From a technical standpoint, Ether’s price recovery has taken place close to a short-term support level that forms a descending triangle pattern.

A descending triangle is seen as a bullish sign of a trend continuing upwards. When the price breaks above the downward sloping trendline with significant trading activity, it can move up by the same amount as the triangle’s highest peak.

Consequently, the ETH price may surge up to the triangle’s upper trendline near $1,900. If the price surpasses the $1,900-resistance, it could extend the recovery trend up to $2,100, implying a 20% increase in June.

As a word of warning, descending triangles have frequently been observed at the conclusion of an uptrend, resulting in a sharp decline in prices.

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