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Ethereum Price Surpasses $3,000 Following Unexpected Court Ruling
Ethereum Price Surpasses $3,000 Following Unexpected Court Ruling
Ethereum (ETH), the second largest cryptocurrency by market capitalization, has seen a notable price rise over the past 7 days, with a 5.36% increase bringing its price close to the $3,100 level. Analysts attributed this increase to stalling US retail sales data for April, raising expectations of a potential interest rate cut by the US Federal Reserve to spur economic growth.
The ETH surge was also influenced by a court ruling and an indictment from the US Department of Justice. THE accusation, unveiled on May 15, charged two individuals with wire fraud and money laundering through manipulation of the Ethereum blockchain. The court document highlighted that Ethereum operates as a decentralized blockchain without the need for a trusted intermediary, increasing trust among ETH investors.
This came after the U.S. Securities and Exchange Commission issued a Wells Warning to Robinhood, a trading platform, over alleged securities violations related to cryptocurrency listings and custody operations. The verdict contradicts regulators’ classification of ETH as a security, as it highlights the absence of management or entrepreneurial efforts by others within the Ethereum network.
The US SEC is expected to announce its final decision on VanEck and ARK Invest’s application for Ethereum spot ETFs on May 23 and 24, respectively. While analysts are predicting approval odds of less than 35%, the case for classifying Ether as a security has weakened, contributing to the rally above $3,050 on May 17.