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The recent classification of Ethereum as a commodity by the U.S. Securities and Exchange Commission (SEC) has been a game-changer. This decision highlighted by ETF Store president Nate Geraci has effectively ended a long period of regulatory uncertainty. The SEC approval of Ethereum ETF applications under the rule for commodity-based trust shares rather than the Investment Act of 1940 clearly implies that ETH is not considered a security.
This classification is of great significance for the cryptocurrency industry and this will allow other crypto assets to possibly change their regulatory status over time giving some reprieve to founders and investors in this space.
Several economic indicators and regulatory developments are expected this week making it a crucial one for the cryptocurrency market. There is particular excitement around the SEC pending decision regarding spot Ethereum ETF approval. Moreover increased expectations on US Q2 GDP growth from 1.4% to 1.9% could add more fuel to investor optimism.
Ethereum's price action has been dynamic in recent weeks. After reaching a high of $3,973 on May 27th ETH experienced a breakdown from a bullish flag pattern temporarily invalidating the short-term bullish pressure. The price found support around $2,809.41 on July 5th creating a low point.
But presently technicals have transitioned into short term bullish trend on charts with respect to price action. By now, RSI daily is currently at 59 as compared to few days ago when it was oversold below 30 levels. This also suggests further buying pressures being built up for upside potentials.
MACD indicator on daily scale has just turned bullish after MACD line moved above its signal line crossing over each other recently; hence this signaling a possible bullish trend reversal besides affirming overall positive sentiment about market conditions in the near term future.
To confirm a higher timeframe trend change we are watching closely at the previous lower high resistance of $3,500. If there is a strong break above this level and closure then that can signal commencement of more profound bull run.
On-chain metrics also offer encouragement for Ethereum users showing that 85% of ETH holders are currently in profit at current prices while only about 10% are at a loss based on data obtained by IntoTheBlock. It is also worth noting that this high percentage of profitable positions has the potential to induce more hodling and lesser selling pressure in turn.
Besides, large holders control 51% of ETH making it a significant whale accumulation. Finally, known analyst Ali Martinez has observed how Ethereum whales have been accumulating ETH again after a short distribution period; which might be signaling prolonged bullish move in future prices.
