Analysts name the reasons for the sharp growth of the Ethereum cryptocurrency

Following a lengthy investigation by the US Securities and Exchange Commission (SEC), Ethereum’s value has exceeded $ 3500.

Previously, there were doubts that Ethereum could be classified as an unregistered security. This uncertainty caused significant investor concern, which affected the asset’s market performance. However, the closure of the investigation restored investor confidence, which led to an increase in the market value of Ethereum by 3% per day.

Earlier, Consensys, a key member of the Ethereum ecosystem, filed a lawsuit on April 25, 2024. The lawsuit challenged the SEC’s jurisdiction, arguing that Ethereum qualifies as a commodity and therefore should not be subject to the SEC’s strict rules.

Consensys' lawsuit was a strategic move against the regulator’s alleged overreach. The lawsuit demanded a court confirmation that Ethereum is not a security.

Support for Consensys' position grew, which was marked by significant public and political advocacy. This culminated in an official statement on June 7 calling on the SEC to reconsider its position.

Subsequently, on June 18, the SEC’s Division of Enforcement issued a positive response. «Today, the SEC’s Division of Enforcement responded to us that it is closing its investigation into Ethereum 2.0 and will not take enforcement action against Consensys,» the company said.

Following this announcement, the price of Ethereum rose to $ 3563. Such a reaction emphasizes the market’s sensitivity to regulatory news, especially regarding leading cryptocurrencies such as ETH.