Ethereum (ETH) has experienced a significant price increase of over 15% in the past two weeks, capturing the attention of investors and analysts. This surge underscores the cryptocurrency’s resilience and potential in a turbulent market environment.
Key Factors Driving the Surge
Ethereum’s upward trajectory began on July 10, spurred by the growing anticipation of regulatory approval for spot Ether ETF applications. On that day, Ethereum saw a 9% increase, reaching $3,680.98 and peaking at $3,835.43. Bitcoin also followed suit with a 2% rise, trading around $71,350.
Issuers and exchanges have updated their documents, suggesting that the U.S. Securities and Exchange Commission (SEC) may be reconsidering its stance on spot Ether ETFs. While these funds were previously expected to face rejection, there is now optimism surrounding the applications from VanEck and Ark Invest.
Regulatory Developments
In May, the SEC approved updated 19b-4 filings for Ethereum ETFs, marking a significant step towards full approval. It is widely anticipated that the SEC will approve these ETFs sometime this year, further boosting investor confidence.
Current Market Analysis
Ethereum’s price currently stands at $3,492, reflecting a 1.8% increase in the past 24 hours. Analysts expect the cryptocurrency to fluctuate between $3,500 and $3,750 in the near term. Since its inception, Ethereum has experienced significant price fluctuations, reaching an all-time high of $4,200.86 in May 2021.
Tornado Cash Resurgence Amid Sanctions
Meanwhile, Tornado Cash, an Ethereum-based mixer, has seen a remarkable resurgence, attracting nearly $2 billion in deposits despite ongoing sanctions from the U.S. Office of Foreign Assets Control (OFAC). Data from Flipside Crypto reveals that Tornado Cash received approximately $1.9 billion in deposits in the first six months of this year, a 50% increase over the total deposits for all of 2023.
In August 2022, the U.S. Treasury’s OFAC sanctioned Tornado Cash for allegedly facilitating money laundering for cybercriminals, particularly North Korean hackers. This action led to an 85% decline in Tornado Cash’s activity in 2023. Despite the sanctions, Tornado Cash continues to be used by illicit actors, although North Korean hackers have largely shifted to traditional Bitcoin mixers.
Conclusion
The recent developments surrounding Ethereum and Tornado Cash highlight the dynamic nature of the cryptocurrency market. Ethereum’s price surge, driven by ETF anticipation, demonstrates its resilience and potential, while Tornado Cash’s resurgence despite sanctions underscores the challenges regulators face in curbing illicit activities in the crypto space.
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