Ethereum futures open reached a new all-time high, calling into question whether ETH can rally to $3,800.
Ether (ETH) has been grappling with the $3,600 level for the past three days, yet it seems traders may have overlooked the fact that the ETH price has soared by 58.8% since February. While some market participants attribute the limited upside to uncertainty surrounding the likelihood of a spot Ether exchange-traded fund (ETF) being approved in the U.S., others contend that the surge in Ether futures open interest indicates strong demand from institutional investors.
The debate continues over the implications of the indictment by the United States Justice Department against the cryptocurrency exchange KuCoin. On one hand, the indictment is viewed as a negative for the industry due to the resulting tighter regulatory landscape. However, some argue that this event actually improves the prospects for the approval of a spot Ether ETF by May 25, the date by which the U.S. Securities and Exchange Commission (SEC) is expected to issue its final decision.
A complaint filed on March 26 by the U.S. Commodity Futures Trading Commission (CFTC) against KuCoin for illegal trading activities notably identified Bitcoin (BTC), Ether, and Litecoin (LTC) as “digital assets that are commodities,” falling firmly under the CFTC’s jurisdiction. This stance appears to directly challenge the SEC’s assertions that Ether could be considered a security.