Ethereum (ETH), the second-largest cryptocurrency by market capitalization, experienced a notable price rally over the past 7 days.
Ethereum (ETH), the second-largest cryptocurrency by market capitalization, experienced a notable price rally over the past 7 days, with a 5.36% increase that brought its price close to the $3,100 level. Analysts attributed this surge to stalling retail sales data in the United States for April, raising expectations of a potential interest rate cut by the U.S. Federal Reserve to stimulate economic growth.
ETH's surge was also influenced by a court ruling and a U.S. Department of Justice indictment. The indictment, unsealed on May 15, accused two individuals of wire fraud and money laundering through the manipulation of the Ethereum blockchain. The court document emphasized that Ethereum operates as a decentralized blockchain without the need for a trusted intermediary, boosting confidence among ETH investors.
This came after the U.S. Securities and Exchange Commission issued a Wells notice to Robinhood, a trading platform, over alleged securities violations related to crypto listings and custodian operations. The verdict contradicted regulators' classification of ETH as a security, as it highlighted the absence of management or entrepreneurial efforts by others within the Ethereum network.
The U.S. SEC is expected to announce its final ruling on VanEck and ARK Invest’s spot Ethereum ETF request on May 23 and May 24 respectively. While analysts predict approval odds below 35%, the case for classifying Ether as a security instrument has weakened, contributing to the rally above $3,050 on May 17.
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