Ethereum Surges to $2,000 Marking its First Return to this Level since May, driven by the XRP Ruling

[TL; DR]

After news of Ripple’s victory over the SEC went public the price of ETH surged above $2,000.

Also, after Ripple’s partial victory against the SEC the prices of major cryptocurrencies like ADA, BNB, SOL and BTC rose significantly.

Ethereum is currently trading at around $1,886.

Ethereum’s key support and resistance levels include $1,950, $2,030, $2,050, $2,390 and $2,500.

Introduction

The XRP ruling is a good example of how changes in the crypto regulation can affect the value of investment assets like cryptocurrencies, commodities and stocks. XRP’s partial victory against the US Securities and Exchanges Commission (SEC) has led to the surge in prices of several cryptocurrencies, including XRP, Bitcoin and Ethereum. The aim of this article is to explore how the positive XRP ruling enabled Ethereum to rise above $2,000.

Ethereum Surges to $2,000

The ETH price surged to a three-month new high of over $2,000 following the market momentum which the XRP ruling has created. In fact, the Ethereum price rose significantly, reaching $2,009 within 24 hours after Analisa Torres, the judge presiding over the Ripple case, announced the Ripple vs SEC ruling.

By 14 July ETH had gained by 14% within a month following the recent 5% rise in its value. However, it did not hold the momentum as its price fell to $1,985 a day later. According to CoinGecko, Ethereum last traded above $2,000 on 5 May.

Before that date its price briefly popped above $2,100 in April. However, apart from these two occasions ETH traded below $2,000 for the past 11 months. Even after the recent price surge the value of ETH remained about 59% lower than its all-time high of $4,878 attained in November 2021.

Zooming out data shows that despite the recent price spike ETH is still hovering within a channel. Probably, to break out from the current market range it needs to rise above the April’s high of $2,120. Generally, however, by mid-July ETH remained bullish after a staking of a record high of 24 million coins, which represents about 20% of the total supply.

Also, after the recent price rise the ETH market capitalization increased to $1.3 trillion which is the highest figure it has attained since mid-April.

At the time of writing, 22 July, the price of ETH is $1,886 after losing 2.8% within the last 7 days.

Ethereum Price Since 22 June - CoinGecko

The diagram above clearly indicates ETH’s price trajectory within the last 30 days. As you can see, the ETH price surged to $2,012 on 14 July before falling to $1,914 later in the day.

You can also tell that Ethereum is currently fluctuating within a price channel that lies between $1,883 and $1,950. Incidentally, $1,950 is a key resistance level which ETH should break above to have another meaningful rally.

The Historic XRP Partial Win

Before we discuss how the rest of the crypto market has reacted to the recent regulatory development, let’s briefly explain the historic XRP partial win against the SEC.

On 13 July, Judge Torres ruled that the sale of XRP on the secondary market which includes crypto exchanges does not constitute investment contracts. In such a circumstance, XRP should not be viewed as a crypto security.

Following that ruling several cryptocurrency exchanges, including Coinbase, have relisted XRP which has enhanced its current upward price momentum. Notably, after that ruling the price of Ripple crypto rose by over 70% within a week.

How the Rest of the Crypto Market Has Reacted to Ripple’s Partial Win Against SEC

Following Ripple’s historic win, the prices of most cryptocurrencies which the SEC has listed as securities rose significantly. For example, within 24 hours after Ripple’s court ruling the prices of BNB, Cardano (ADA) and Solana (SOL) increased by 6%, 26% and 33% respectively.

Polygon (MATIC), Avalanche (AVAX), Dogecoin (DOGE) and Uniswap (UNI) are some of the cryptocurrencies that gained by double-digit figures. Outstandingly, Ripple’s sister coin Stellar (XLM) gained by 55% within that period.

Bitcoin, the number one ranked cryptocurrency by market cap, reached a price of US$31,814, a value which it lastly attained in June 2022. Basically, all the top 10 non-stablecoin cryptocurrencies gained remarkably after Ripple victory.

ETH’s Future Market Outlook

The positive sentiment around the XRP ruling also makes the future of ETH promising. Moving forward, however, traders should keep an eye on ETH’s key support and resistance levels.

As noted, the area around $1,950 is a key zone that acts as a strong support level Historically, it acted as a key support for ETH’s upward price momentum. If the price of ETH surpasses $1,950 it would target $2,030 which is the 78.6% Fibonacci retracement level. If Ethereum surges past this point, its next destination would be $2,050.

Probably, the next most critical resistance level is the $2,500 because many current ETH holders purchased the coins at that price. On the other hand, much of the staked ETH was acquired at the average price of $2,390 which suggests that most Ethereum investors are still in the red at the moment.

However, such investors might be tempted to sell their ETH holdings at the value of $2,390 which could create a bearish momentum on the price. With ETH still trading around $1,886, it may take time to reach a value of $2,390.

Conclusion

In the 24-hour period that stretched from 13 to 14 July 2023, the price of Ethereum surged above $2,000 following the news of Ripple’s victory against the SEC. In addition to Ethereum positive trend other major cryptocurrencies like Bitcoin, Solana, Avalanche and BNB gained much during that period.

FAQs about Ethereum

What’s happening to Ethereum?

The current price of Ethereum is $1,886 after losing 2.8% within the last 7 days. Recently, its value surged above $2,000 following the news of Ripple’s victory against the SEC.

Has Ethereum has a future?

Ethereum is one of the most promising crypto assets on the market since it drives many decentralized applications. Currently, it is the second ranked cryptocurrency by market capitalization which shows its popularity and high demand.

Is Ethereum high right now?

Ethereum is currently trading at $1,886 but has the potential to rise further. However, it is more than 59% lower than its all-time high of $4,878 attained in November 2021.

Why is ETH falling?

The price of ETH has been falling due to several reasons which include the depressed crypto market, the uncertainty in the regulatory environment and the poor global economic situation. For instance, both inflation and interest rates have been rising in major economies which include the United States.