SEC withdraws lawsuit against Coinbase, improving sentiment in the crypto market 📈
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The SEC has agreed to withdraw the lawsuit against Coinbase, along with allegations of operating an illegal trading platform.
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Coinbase gains 4.20% in pre-market trading.
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Sentiment in the broader cryptocurrency market has improved, with Bitcoin up 0.70% to $99,000 and Ethereum up 2.90% to $2,820.
The Coinbase exchange (COIN.US) announced that the Securities and Exchange Commission (SEC) has agreed to withdraw the lawsuit in which it accused the largest U.S. cryptocurrency trading platform of operating an illegal exchange. This decision marks another retreat from the U.S. authorities' previous stance on the crypto market. Interestingly, last week, the SEC filed a motion to halt a similar case against Binance, citing the pending development of regulatory frameworks for digital assets under President Donald Trump's administration.
This news is beneficial not only for publicly traded companies linked to the crypto market but also for cryptocurrencies themselves. A clear signal from the government indicating a softening of pressure on this sector could contribute to an overall improvement in market sentiment. As a result, we are seeing Ethereum prices rise nearly 3% today.
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Ethereum has regained ground after experiencing significant declines between January and February. Today, following the news about the SEC and Coinbase, ETH is reaching local highs within its consolidation zone. If it manages to break through this level sustainably, further gains toward the 200-day EMA (gold curve on the chart) cannot be ruled out. From a technical perspective, the overall downtrend remains intact. Source: xStation
Ethereum has endured several months of solid declines. Excluding the bullish November, Ethereum has been in a downtrend since June 2024. However, the recent positive developments have led to a stronger rebound in Ethereum compared to the broader crypto market. Fundamentally, sentiment is supported by billion-dollar repayments to retail investors from the collapsed FTX exchange and a filing by 21Shares seeking approval for Ethereum staking in spot ETH ETFs. As a result, Ethereum has demonstrated relative strength during the latest market recovery.
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