The recent decision by the U.S. Securities and Exchange Commission (SEC) to permanently close its investigation into Ethereum 2.0 has had a significant impact on the cryptocurrency market. This victory for Ethereum has pushed the price of the second-largest cryptocurrency up by 4.9% over the past 24 hours, attracting the attention of a savvy whale investor.
Whale Buys Massive Ethereum Stash
According to the analytics account @spotonchain, an anonymous large cryptocurrency whale has taken advantage of Ethereum’s price surge by transferring 16,604 ETH (worth approximately $58.6 million) from the world’s largest crypto trading platform, Binance over the past 19 days. The whale accumulated all of this Ethereum at an average price of $3,600 per coin, with the most recent purchase of 5,603 ETH (the equivalent of $19.7 million) made just a few hours after the SEC’s decision was announced.
This big whale withdrew 16,604 $ETH (~$58.6M) from #Binance at an avg price of $3,600 in the past 19 days!
The whale’s last actions were to accumulate 5,603 $ETH ($19.7M) ~ 1hr ago, after the #SEC permanently suspended their investigation into #Ethereum.
Follow @spotonchain and… pic.twitter.com/TYeLwLsWns
— Spot On Chain (@spotonchain) June 19, 2024
SEC Closes Ethereum 2.0 Investigation
The decision by the Enforcement Division of the SEC to close its investigation into Ethereum 2.0 was announced by Consensys Lab, the company founded by Ethereum co-founder Joseph Lubin. This development is a significant win for Ethereum developers, technology providers, and the entire cryptocurrency industry, as it means the regulator will not officially classify Ethereum as a security.
The closure of the investigation came in response to a letter sent to the SEC on June 7, in which the Consensys team asked for confirmation that the approvals of the spot Ethereum ETFs made by the SEC in May meant that the investigation would be closed. This decision is a crucial milestone for Ethereum, but the Consensys team notes that it does not provide a solution for the rest of the cryptocurrency industry, which has suffered under the “SEC’s unlawful and aggressive crypto enforcement regime.”
Ethereum Price Surge
Fueled by the SEC’s decision, Ethereum demonstrated a substantial price increase, going up by 4.88%. This rise came after a 6.69% decline earlier this week, and the cryptocurrency has since recovered. However, the 5% price surge was followed by a marginal pullback of less than 1%, and at the time of writing, Ethereum is trading at $3,541.
This news highlights the impact that regulatory decisions can have on the cryptocurrency market and the importance of Ethereum’s ongoing legal battles with the SEC. As the industry continues to evolve, it will be crucial for developers, technology providers, and investors to closely monitor the regulatory landscape and its implications for the future of cryptocurrency.
