Ethereum’s (ETH) price recently experienced a 3% drop, falling to $1,816, as the cryptocurrency market reacts to the news of the SEC filing a lawsuit against Binance and its founder, Changpeng Zhao, for 13 violations. Despite this setback, ETH has managed to escape being named in the SEC charges, unlike other altcoins such as Cardano (ADA), Algorand (ALGO), Solana (SOL), and Cosmos (ATOM), which have faced greater repercussions. This could potentially lead to a stronger recovery for ETH compared to its counterparts, especially as staking activity continues to increase.
ETH’s current market indicators reveal a weakened position in line with the rest of the market. Its relative strength index has been slipping below 30, while the 30-day moving average is plummeting towards the 200-day average. However, support for ETH remains stable around $1,800, and with no mention of ETH in the SEC complaint, the altcoin has an opportunity to recover unobstructed.
The altcoins specifically mentioned in the SEC complaint, including Binance Coin (BNB), have been hit harder in the market compared to ETH. Although some individuals are concerned that the SEC might eventually target ETH, others argue that the complaint provides guidelines for cryptocurrency platforms to avoid being classified as unregistered securities.
With the introduction of staking withdrawals last month and a reported increase in outflows away from exchanges, it’s possible that ETH’s price will recover steadily in both the near and distant future. Analysts predict a potential return to $1,900 in the coming weeks, followed by a climb above $2,000 in the next few months.
While opportunity exists in the market for ETH, some investors might prefer to explore emerging altcoins that have a higher growth potential in the short term. Notable examples include presale tokens, which have the capability of experiencing large rallies once listed on exchanges. Wall Street Memes (WSM), a new cryptocurrency associated with the meme stocks movement, is one such token that recently raised over $4.4 million in its presale.
Although WSM lacks fundamentals beyond its community’s support, the fact that it shares a connection with the meme stocks movement could lead to significant hype once listed. Those looking to invest in WSM’s presale may choose to do so through the token’s official website. As Ethereum continues to gain traction with its staking capabilities and increased outflows away from exchanges, it’s only a matter of time before the market regains momentum.
Source: Cryptonews
