“ETH Will Explode Soon” as SEC Ruling Ignites Momentum

The SEC’s rule reversal sparks optimism for Ethereum, with analysts predicting a potential rally to $7,000 and traders calling it an important moment.

Ethereum (ETH-USD) is poised for a seismic shift following a huge decision by the U.S. Securities and Exchange Commission (SEC). On January 23, the SEC rescinded the controversial SAB 121 rule, which had required financial firms holding crypto assets to record them as liabilities on their balance sheets. This regulatory change removes a significant barrier for institutional adoption, sparking fresh optimism across the crypto market. Reflecting the bullish sentiment, pseudonymous trader Crypto Caesar confidently stated, “ETH will explode soon.”

Analysts Highlight Ethereum’s Breakout Potential

Crypto analyst Markus Thielen described Ether’s current price structure as a “low-risk, high-reward opportunity,” according to Cointelegraph. He pointed to an inverse head-and-shoulders pattern on Ethereum’s price chart, which often signals bullish momentum. With Ether trading at $3,325, Thielen suggested that breaking through the $4,100 resistance level could pave the way for a rally to $7,000.

Other analysts share the optimism. Pseudonymous trader Titan of Crypto called a $7,000 price “inevitable,” while Crypto Caesar’s emphatic prediction added to the market’s excitement. The SEC’s reversal of SAB 121 has further strengthened the case for institutional adoption, potentially driving a wave of capital into Ethereum-backed services.

Buterin Proposes Enhancements to Strengthen Ether

Ethereum co-founder Vitalik Buterin has also weighed in, urging the ecosystem to implement mechanisms that directly enhance Ether’s value. These include burning fees, staking rewards, and directing resources toward public goods in the Ethereum network. Buterin’s proposals aim to cement Ether’s role as the primary asset for both Layer 1 and Layer 2 activities.

Ethereum Needs to Break $4,100 Resistance Level

While the mood in the market is overwhelmingly bullish, Ethereum still faces technical challenges. Breaking the $4,100 resistance level is crucial to maintaining momentum. Additionally, the network’s scaling plans, including innovations like “blobs” (temporary data attached to transactions), could drive further utility and adoption, according to CoinDesk.

At the time of writing, Ethereum is sitting at $3,404.79.