Why is the price of Ethereum (ETH) rising today?

On June 6, Ethereum’s native token, Ether (ETH), rose by about 2.25% to around $1,825, compared to a June 5 low of $1,775.

The surge appeared to be synchronous with similar moves elsewhere in the cryptocurrency market. Interestingly, the move coincided with the US Securities and Exchange Commission’s ruling calling Ethereum not a “security” in its lawsuit against Binance and Coinbase.

10/ The SEC alleges that the following assets are securities: BNB, BUSD, Solana, Cardano, Polygon, Filecoin, Cosmos, Sandbox, Decentraland, Algorand, and Axie Infinity. pic.twitter.com/oMz98NB6gh

— Henry Arslanian (@HenriArslanian) June 6, 2023

SEC stays away from Ethereum for now

In September 2022, SEC Chairman Gary Gensler stated that proof-of-stake tokens such as ether qualify as securities according to the “Howe Test”. However, his opinion differs from that of his predecessor, William Hinman, who said that ether is not a security in his 2018 speech.

Furthermore, in April 2023, Gensler sidestepped questions about the status of Ethereum before the US House Financial Services Committee.

And now, ether’s omission from the SEC’s list of crypto assets it considers a security — including Binance-branded stablecoin BUSD and PoS assets Solana (SOL) and Cardano (ADA) — has boosted its competitive advantage in the layer-a blockchain market. Have given. ,

This is visible in the performance of Ethereum’s crypto market dominance (ETH.D) since the SEC lawsuit; It rose to 20.7% on June 6, the highest in nine months.

On the other hand, the market share of bitcoin (BTC.D) has dropped to 47.23%, the lowest since April 2023.

Related: SEC Charges: Binance Net Outflows on Ethereum Surge to $778M Since Nansen

Is An Extended ETH Price Rally Ahead?

From a technical perspective, Ether price bounced near a short-term support level forming a descending triangle pattern.

The descending triangle is considered a bullish continuation pattern in an uptrend. It gets resolved after the price breaks above the falling trendline resistance with strong volume and rises to the maximum height of the triangle.

As a result, ETH price could move higher towards the upper trend line of the triangle near $1,900. But, if the price breaks above the $1,900-resistance, this recovery could extend the trend towards $2,100. In other words, a 20% rebound in June.

As a note of caution, descending triangles often appear at the end of an uptrend, leading to a sharp bearish reversal.