Ethereum Price Prediction – SEC’s Ended Investigation Could Spark Bull Run to $5.5K

Ethereum’s native token, Ether (ETH), is painting a classic cup and handle pattern, often considered a bullish signal by technical analysts. The upside technical outlook is receiving a further boost from the SEC’s ended investigation into Ethereum’s status as a security, which may push the ETH price toward the $6,000 mark in the coming weeks.

Ethereum Price Prediction: Cup-and-Handle Breakout Eyes $5,500

The cup and handle pattern is a bullish continuation pattern that signals a potential upward price movement. It consists of two main parts: the cup, which resembles a rounded bottom and indicates a period of consolidation and accumulation, and the Handle, which is typically a downward-sloping channel and indicates a brief period of profit-taking before the next leg up.

Meanwhile, the pattern develops beneath a common resistance line called the “neckline,” resolving when the price breaks above it decisively and rises by as much as the pattern’s maximum depth, i.e., the largest distance between the cup’s trough and the neckline.

As of June 19, Ether was painting the handle while eyeing a decisive breakout above its neckline resistance line at around $4,000.

Should it happen, ETH’s price target for August will appear to be around $5,500. Conversely, a break below the handle’s lower trendline will invalidate the cup-and-handle breakout scenario, pushing the price toward its 200-day exponential moving average (200-day EMA; the blue wave) at around $3,040 instead.

Nonetheless, Ethereum’s bullish technical is receiving support from ultra-optimistic fundamentals, namely the SEC’s decision to end its investigation into Ethereum, which technically paves the way toward a spot exchange-traded fund approval in July, as Bloomberg analyst Eric Balchunas predicts.

Ethereum is Not Security: SEC Admits Defeat

The SEC is ending its investigation into whether Ether is a security.

In a June 19 X post, Ethereum developer Consensys announced, “The Enforcement Division of the SEC has notified us that it is closing its investigation into Ethereum 2.0.” This decision means the SEC will not charge that sales of ETH are securities transactions, which Consensys called a “major win for Ethereum developers, technology providers, and industry participants.”

The SEC’s decision follows a letter from Consensys on June 7, requesting an end to the investigation after the regulator approved spot Ether exchange-traded funds (ETFs) in May, which are based on ETH being a commodity.

Consensys senior counsel Laura Brookover shared the SEC’s response letter, stating the agency does not “intend to recommend an enforcement action.”

This decision comes after the SEC approved 19b-4 filings from VanEck, BlackRock, Fidelity, and other Wall Street firms, allowing spot Ether ETFs to be listed and traded. Bloomberg analyst Eric Balchunas expects these ETFs to start trading on July 2.

Meanwhile, K33 Research predicts these investment products will attract $4 billion in inflows in the first five months, indicating strong demand for ETH tokens, increasing its prospects of hitting $5,500 by August.

The bullish outlook has improved further due to investors rotating their ETH holdings to private wallets from crypto exchanges, indicating they intend to hold the asset instead of trading them for other cryptocurrencies or fiat money.