The digital asset market appeared to be back on the upswing on Thursday after suffering a significant decline in the first half of the week. This includes Ethereum, which has been revealed to be the subject of a legal campaign by the U.S. Securities and Exchange Commission (SEC) to restate its security status. However, one crypto analyst predicts that Ethereum will reach $5,000 amid SEC opposition to ETH.
In fact, the asset is up over 4% in the past 24 hours, according to CoinMarketCap. Currently trading at $3,530, technical indicators point to the asset's upside potential. Additionally, as it is being targeted by the SEC, there is an outpouring of support from across the industry.
Also read: SEC advances legal campaign to classify Ethereum as a security
Ethereum nears massive rally as SEC targets ETH’s security status
Yesterday, the digital asset market was shocked by news that the SEC is investigating the Ethereum Foundation. Subsequent reports revealed that subpoenas had been issued to companies that had interacted with the foundation. Furthermore, many perceived this effort as an attempt by the government agency to clarify the security situation of ETH.
However, just 24 hours later, the development did not hinder asset prices. One crypto analyst predicted that Ethereum (ETH) could reach $5,000 amid the SEC lawsuit.Specifically, Cryptocurrency Analyst CryptoJelleNL Posted in X regarding asset performance.
They said that despite the FUD presented by the SEC article, maintaining the $3,500 level would help ETH reach $5,000 “soon.” Ethereum has been steadily increasing since March, increasing by more than 20% this month. However, today's performance is a departure from the weekly chart, with it down more than 9%.
Also read: Ethereum plummets below $3,400: Could ETH reach $4,000 this week?
The SEC's actions in this regard have been voiced by the entire industry, and we are not going unresponsive. Among them are Paul Grewal, Chief Legal Officer of Coinbase, said: who called the report “ETH misinformation” and reasserted the asset's status as a non-security.
moreover, Solana founder Anatoly Yakovenko briefly expressed his support for the asset. In his post to X, he said, “If the statistics mean Ethereum, I'm against the state.” Overall, the narrative of support for ETH has been overwhelming. Therefore, the price trajectory could rise significantly in a concerted effort by the market to defy the SEC's actions.
