Ethereum News Roundup: SEC Stance, Developer Updates, and Price Analysis

Ethereum faces potential regulatory clarity as the SEC’s actions hint at a non-security status, while developers contemplate splitting the upcoming Pectra hard fork to accommodate more improvements. Meanwhile, traders eagerly watch for bullish signals in Ether’s price movement, with analysts suggesting that an increase in the funding rate could trigger a significant rally.

SEC’s Stance on Ethereum Clarifies, But Questions Remain

The U.S. Securities and Exchange Commission (SEC) may have inadvertently signaled that Ethereum (ETH) is not a security, according to Paul Grewal, chief legal officer at Coinbase. This observation stems from a recent settlement between the SEC and trading platform eToro, which allows the continued trading of Bitcoin (BTC), Bitcoin Cash (BCH), and Ethereum (ETH).

While this development suggests a potential shift in the SEC’s view of Ethereum, Grewal criticizes the agency’s lack of clear rationale for distinguishing between cryptocurrencies. “There is no plan, no framework, no logic, no due process, and certainly no respect for the law,” he stated.

However, Jake Chervinsky, chief legal officer at Variant, cautions that settlements do not establish new legal precedents. The crypto community awaits further clarification on Ethereum’s regulatory status.

Ethereum Developers Consider Splitting Pectra Hard Fork

Ethereum developers are contemplating splitting the upcoming Pectra hard fork into two separate events, according to research analyst Christine Kim. The idea, discussed in a September 12th call, aims to incorporate more Ethereum Improvement Proposals (EIPs) into the upgrade.

If implemented, the first fork could be shipped by February 2025, including several EIPs such as set externally owned accounts code for one transaction (7702) and move committee index (7549). The second fork would focus on the EVM Object Format (EOF) and PeerDas, potentially including additional EIPs like SSZ and increased blob count.

The developer community remains divided on the implications of these changes, with some expressing concerns about potential disruptions to smart contracts and network stability.

ETH/USD Technical Analysis: Awaiting Bullish Signals

Ether’s price movement has been relatively stagnant recently, struggling to close above the crucial $2,500 level. Market analysts are looking for indicators of a potential price rally, with particular attention to the funding rate in the futures market.

CryptoQuant contributor Burak Kesmeci suggests that an increase in Ether’s funding rate above 0.015 could signal a significant price spike. Currently, the funding rate stands at around 0.0056%, comparable to levels seen before previous rallies.

Technical analysis shows Ethereum forming a base above $2,250, with resistance near $2,400. A breakthrough above this level could potentially push the price towards $2,465 and beyond. However, failure to clear this resistance might lead to a retest of support levels at $2,300 and $2,250.