Currently, the Ethereum price is hovering around a crucial level, creating a ‘make or break’ scenario in the market.
The cryptocurrency market is currently navigating complex security law issues, causing price volatility for many digital assets. Ethereum (ETH), the second-largest cryptocurrency, is being hit particularly hard.
The situation has escalated with the recent disclosure of the Hinman documents suggesting that Ether is not considered a security. This, combined with positive Consumer Price Index (CPI) data, has brought Ethereum to a critical point in its price trajectory.
Ethereum Whales Can Create a Sell Situation
The activities of a prominent Ethereum whale, who owns an estimated $738 million worth of ETH, have left even seasoned market analysts stumped. This individual recently moved 450K ETH to an address linked to cryptocurrency exchange, Coinbase.
This action has aroused curiosity and concern, mainly because such a substantial transaction could have a significant influence on the ETH market if these assets were to be sold.
Furthermore, the US Securities and Exchange Commission (SEC) maintains a position that all cryptocurrencies, with the exception of Bitcoin, are securities. The regulator’s recent crackdown on cryptocurrency exchanges has spilled over into staking services, which it aims to stop.
This situation could drive more staked ETH away from exchanges and closer to Lido, the leading provider of liquid staking. While this may seem beneficial, it carries substantial risks for the Ethereum ecosystem.
On June 13, Ethereum advocates on ‘Bankless’ raised concerns about Lido, and they advocated for measures to prevent its monopoly on ETH staking.
Continued SEC enforcement against exchanges is expected to further drive Ethereum staking towards Lido.
A notable spike in Coinbase’s staked ETH redemptions was already seen last week following the regulator’s lawsuit, and may soon put selling pressure on the price chart.
What to Expect from the ETH Price Next?
Ether attempted a rally, but the modest bounce indicates that the bears are capitalizing on every slight rally. The bears are further consolidating their positions by taking the price below the immediate support level of $1,730.
If the bears are successful in pushing the price below $1,700, it could signal the start of a more substantial correction. There is minor support at $1,610, but if this level succumbs, the fall could extend to $1,500.
The ETH price is currently consolidating near $1,720-$1,750, which suggests that buyers are making an effort to prevent ETH price from falling below the EMA20. Currently, the ETH price is trading at $1,740, rising more than 0.1% in the last 24 hours.
On the upside, if the ETH/USD price breaks out of the current consolidation range at $1,779, it would suggest that the bulls are vigorously defending the support level. A rise above the resistance line could pave the way for a possible move higher toward $1,910.
According to CryptoPredictions, the ETH Price is forecasted for today (15.06.2023) to be in the $1,476.301 – $2,171.030 price range. Ethereum is predicted to end today at $1,736.824.
By Audy Castaneda
