Ethereum surges after SEC closes investigation

Bitcoin price edged lower on Wednesday, dropping below the key $65,000 level. If BTC price declines, support can be found at $60,000, while further resistance may be encountered at $67,300. 

Ethereum price gained strength on Wednesday, rising above the $3,570 level. If Ethereum's price declines, it may encounter support near $3,300, while if it increases, resistance may be encountered near $3,700.

Ethereum price was boosted on Wednesday by news that the SEC has dropped its investigation into Ethereum crypto firm Consensys. The US Securities and Exchange Commission has announced that it has closed its investigation into Ethereum 2.0 over alleged security transactions.

Fluctuating risk sentiment is causing volatility in crypto markets. Cryptocurrency prices are affected by central banks’ interest rates. High interest rates are restricting economic growth putting pressure on risk assets, while the promise of rate cuts boosts crypto markets. As expected, the US Federal Reserve kept interest rates unchanged at its policy meeting on Wednesday, within a target range of 5.25% to 5.50%. Odds of a Fed rate cut in September dropped from 70% to 60% this week putting pressure on risk assets. 

Crypto markets have also been under pressure by the war in Gaza. Fears that the war will spread in the Middle East are promoting a risk aversion sentiment putting pressure on risk assets such as cryptocurrencies. Israel threatens to declare an all-out war with Hezbollah, which will destabilize the region further.

BTC/USD 1h Chart

ETH/USD 1h Chart

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Written by:
Myrsini Giannouli

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