Despite SEC's lawsuit against Binance, Ethereum investors shift holdings, impacting ETH's market dynamics.
Despite Ethereum (ETH) being exempt from the SEC's lawsuit against Binance, investors have shifted their ETH holdings from the exchange. Analytics firm Nansen observed a rise in Binance's net ETH outflows to $778.6 million since June 5, driven by outflows surpassing inflows. The firm also reported negative ETH flow on an hourly basis.
In parallel, Ethereum co-founder Jeffrey Wilcke transferred 22,000 ETH (worth $41 million at the time) to Kraken, hours before the news of the SEC action against Binance.
Bitcoin (BTC) also saw outflows from Binance, but according to Cryptoquant, these were not substantial compared to past stress events and remained insignificant relative to the exchange's reserves.
Despite the Binance lawsuit, ETH price rebounded, with a 5.7% rise on June 6. The price, however, continues to struggle against a multi-week descending trendline. Breaking this trendline could potentially trigger an ETH price rally towards the resistance level of $1,930.
The ongoing lawsuit and SEC's increasingly hard stance on cryptos could inject further uncertainty, potentially applying bearish pressure on the ETH price. ETC Group founder and co-CEO, Bradley Duke, highlighted the contrast between the US and Europe's approach to crypto regulations.
With an RSI value of 53.9 on the daily charts, ETH's sentiment remains neutral.
