On-chain data recently showed that the Ethereum staking has experienced significant growth over the last month. This undoubtedly presents a bullish outlook for the Ethereum ecosystem, which is already oozing with a lot of bullish sentiment heading into July. 

Almost 60,000 Unique Depositors Join Ethereum Network

Data from the on-chain analytics platform CryptoQuant shows that 59,894 new depositors have joined ETH’s staking network since May 20. Interestingly, this significant increase began around the time Bloomberg analysts James Seyffart and Eric Balchunas increased their approval odds for the Spot Ethereum ETFs to 75%. 

This again highlights the Spot Ethereum ETFs’ positive impact on ETH, although they haven’t begun trading. Thanks to these funds, the network has achieved a 4% increase in staking participation in just over a month. Increased staking participation is bullish for ETH, making the network more decentralized. 

Furthermore, the increase in the number of new depositors will also reduce ETH’s already dwindling circulating supply since these depositors have to lock up a significant amount of ETH to become validators on the network. Data from Dune Analytics shows that over 33 million ETH is locked up, representing almost 28% of Ehereum’s total supply. 

ETH’s Supply Side Paints A Bullish Picture

A reduction in Ethereum’s circulating supply is a bullish fundamental since it helps reduce the impact of any potential selling pressure on the crypto token. The positive impact of these locked-up tokens also becomes more evident as the demand for Ethereum increases since ETH’s price will bow to the dynamics of supply and demand. 

ETH’s distribution also paints a bullish picture for the crypto token. Data from the market intelligence platform IntoTheBlock shows that about 78% of ‘s supply, including staked ETH, is held by long-term holders, those who have been holding the crypto token for over a year. 

This shows that Ethereum’s supply is concentrated in the hands of individuals who are unlikely to offload their holdings anytime soon. This is significant, considering institutional investors are set to increase ETH’s demand once the Spot Ethereum ETFs begin trading. These funds are expected to start trading this month. 

Balchunas recently suggested that these Spot Ethereum ETFs could begin trading soon after July 8. Balchunas and Seyffart had previously predicted that these funds could begin trading by July 2. However, Balchunas noted that the Securities and Exchange Commission (SEC) had taken extra time to get back to the Spot Ethereum ETF issuers, so they had to change their timeline for when these funds would launch. 

Bitwise’s Chief Investment Officer Matt Hougan recently predicted that these Spot Ethereum ETFs could attract $15 billion in their first 18 months of trading. 

At the time of writing, ETH is trading at around $3,470, up over 2% in the last 24 hours, according to data from CoinMarketCap. 

Featured image created with Dall.E, chart from Tradingview.com

Ethereum (ETH) is currently facing a critical test as it approaches the key support level of $3,360. This price point has emerged as a significant marker in recent trading sessions, with market participants closely watching to see if ETH can maintain its footing or if further declines are imminent. 

The $3,360 level represents a crucial battleground between bullish and bearish forces, and its outcome could set the tone for Ethereum’s short-term price trajectory. In this article, we will explore ETH’s potential price implications in the event of a rejection or a breach with the help of technical indicators.

At the time of writing, Ethereum was trading at around $3,387 and was down by 1.62% with a market capitalization of over $407 billion and a 24-hour trading volume of over $11 billion. Its market capitalization is down by 1.52%, while its trading volume is up by 32.02% in the past day.

Will $3,360 Support Hold Or Break?

It can be observed on the 4-hour chart that ETH’s price has experienced a drop toward $3,360 and is trading below the 100-day Simple Moving Average (SMA). Currently, the price is moving in a consolidating manner, which is slightly above this level.

Additionally, the 4-hour Relative Strength Index (RSI) indicates that Ethereum’s price may breach below this support level and continue in its downtrend as the RSI line has dropped below 50% and could drop into the oversold zone.

Taking a look at the 1-day chart, it can be seen that ETH is attempting to drop below the 100-day SMA. Although the price of ETH is still bullish, based on current price action it may tend to fall further in the long run.

Finally, the 1-day RSI indicator signals a bearish trend ahead as the signal line has already dropped below 50% and is heading toward the oversold zone. From the price analysis and the formation of technical indicators, it can be suggested that the crypto asset may likely break below the $3,360 support.

Ethereum’s Path Beyond $3,360

Exploring ETH’s prospects and strategies beyond $3,360, it was revealed that if the price of ETH breaks below this level, it may move lower to test the $3,051 support level and probably move on to test the $2,865 support level and other levels below if the price breaches this level.

However, if ETH’s price faces rejection at the $3,360 support level, it will begin to move upward toward the $3,659 resistance level. Should the digital asset breach this support level, it may move further to test the $3,975 resistance level and possibly other higher levels.

Featured image from Adobe Stock, chart from Tradingview.com

The US Securities and Exchange Commission (SEC) has intensified its legal battle with the crypto industry by filing a lawsuit against ConsenSys, a blockchain firm known for its MetaMask wallet product and its focus on the Ethereum network. 

The SEC alleges that ConsenSys violated federal securities laws by operating as an unregistered broker and dealer while offering services for “crypto securities,” amassing fees exceeding $250 million. 

SEC Lawsuit Against ConsenSys 

The SEC’s lawsuit against ConsenSys echoes similar complaints against other crypto firms such as Coinbase and Kraken. However, what sets this lawsuit apart is the context surrounding ConsenSys’ response to the SEC’s actions. 

In April, ConsenSys filed a lawsuit against the SEC after receiving a Wells notice seeking clarity on whether Ethereum should be classified as a security. Just recently, ConsenSys announced the closure of the SEC’s “Ethereum 2.0” investigation, interpreting it as an indication that Ethereum fell outside the agency’s jurisdiction. 

Notably, the SEC did not name Ethereum as one of the unregistered securities offered by ConsenSys in Friday’s filing, which may have led to the approval of the Ethereum ETF applications by the world’s largest asset managers on May 23.

Crypto Industry’s Regulatory Battle

ConsenSys, founded by Joseph Lubin, one of Ethereum’s developers, distinguishes itself from previous SEC targets. Rather than operating as an exchange, ConsenSys focuses on software development, including the MetaMask digital wallet. 

The SEC’s lawsuit argues that the firm violated securities laws by enabling the “swapping” of crypto assets through MetaMask. Particularly, the agency has targeted Ethereum staking services, namely Lido and Rocket Pool, alleging that their tokens, stETH and rETH, respectively, are unregistered securities.

The SEC further claims that ConsenSys facilitated over 36 million crypto asset transactions, including at least 5 million involving what the agency deems to be securities. 

Previously, the SEC had brought similar charges related to staking against Kraken, resulting in a $30 million settlement, while Coinbase has contested the charges.

While the new SEC complaint against the blockchain firm does not classify Ethereum as a security, it represents another front in the SEC’s ongoing campaign against major players in the crypto industry. 

Many within the crypto community may view this as a partial victory, given the absence of Ethereum’s inclusion as an unregistered security. However, the lawsuit further highlights the regulatory uncertainties surrounding the industry’s top companies. 

ConsenSys, currently engaged in an ongoing lawsuit against the SEC in Texas, criticized the agency’s actions, accusing it of pursuing an “anti-crypto agenda” through arbitrary enforcement actions and regulatory overreach.

At the time of writing, ETH was trading at $3,777, down 2.3% in the past 24 hours as the crypto market continues to experience significant selling pressure. 

Featured image from DALL-E, chart from TradingView.com