Ethereum
Why did the price of Ether (ETH) increase today? — TradingView News
The price of ether ETHUSD surged 24.50% in the last 24 hours to around $3,790, its highest level in two months on May 21. The second-largest cryptocurrency outperformed the broader crypto market whose gains amounted to around 11%.
The recent surge in the price of Ether is due to two key factors: the increasing chances of US approval of an Ethereum spot exchange-traded fund (ETF) and a recent indictment from the Department of Justice which reduces the probability that ETH will be classified as a security.
Spot Ethereum ETF has 75% chance of approval
The U.S. Securities and Exchange Commission (SEC) has reportedly contacted at least one cryptocurrency exchange and potential issuer of spot-Ether ETFs to update their associated 19b-4 filings. Fidelity Investments, one of the ETF applicants, has already amended its application by removing its ETH staking plans.
Bloomberg ETF analyst Eric Balchunas and research analyst James Seyffart increased their odds of Ether ETF spot approval from 25% to 75% after the report was released. 
Meanwhile, Standard Chartered analyst Geoff Kendrick predicts that the SEC will approve the investment product this week, resulting in inflows of $15 billion to $45 billion in the first 12 months.
These events have increased investor appetite for Ether in the short term, similar to what happened in the Bitcoin (BTC) market ahead of ETF approval in January.
ETH is unlikely to be classified as a security
Ether’s recent rise was also influenced by an indictment unveiled by the US Department of Justice on May 15.
The indictment charged two individuals with wire fraud and money laundering for manipulating the Ethereum blockchain. He emphasized that “Ethereum is a decentralized blockchain.” […] without the need for a trusted intermediary” and that “no central actor manages the Ethereum network”.
Additionally, the court recognized that Ethereum smart contracts facilitate transactions without requiring a trusted intermediary.
These statements boosted investor confidence in Ether, particularly after the SEC issued a Wells Notice to Robinhood on May 4 for alleged securities violations related to crypto listings and custodian operations.
Related: Could staked ETH be classified as a security? A galaxy researcher gives his opinion
Orlando Cosme, founder and CEO of Lexproof, noted that such a verdict calls into question the classification of ETH as a security by regulators, implying “that there would be no management or entrepreneurial effort on the part of others.”
Ether Open Interest, Funding Rate Rises Sharply
Ether’s price rise further coincides with a sharp increase in its open interest (OI) and funding rates.
On May 21, Ether Futures OI surged over $3 billion to $14.68 billion as the funding rate increased to a one-month high of 0.567% weekly. 
A high OI generally signifies growing investor interest and confidence in the asset, which suggests traders are positioning themselves based on potential price movements.
Meanwhile, a high funding rate indicates that more traders are betting on the price of Ether to rise (long positions) than to fall (short positions). This suggests bullish sentiment among traders, willing to pay a premium to maintain their long positions.
ETH Price: Falling Wedge Breakout
From a technical perspective, Ether’s gains today are part of a falling wedge breakout phase.
A falling wedge forms when prices move within a descending channel comprising two converging trendlines. Meanwhile, as a general rule of technical analysis, the pattern resolves after the price breaks its upper trendline and increases to its maximum height.
Applying the same technical rule on the ETH chart brings its upside target to around $4,120 by May, an upside of around 10% from current price levels.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research before making a decision.