Ether (ETH) price is trading slightly higher on Nov. 23, maintaining support above the $2,000 level after briefly retesting $1,930 on Nov. 21. Over the past week, Ether’s price has increased by 2.5%, while the total market capitalization has grown by 0.5%. This uptrend can be attributed to improved decentralized applications (DApps) metrics, increased protocol fees, and Ethereum’s dominance in the non-fungible token (NFT) market.
To assess whether Ether can sustain its $2,000 price point, one must consider the repercussions of Binance’s recent regulatory challenges following its plea deal with the U.S. Department of Justice (DoJ).
Investor fear drops as Ethereum network conditions improve
Binance leads in Ether spot trading volume, accounting for 30% of ETH futures contracts’ open interest. The closure of Binance’s $2.35 billion worth of ETH derivatives contracts within a short period could have significant consequences. Despite initial analyses showing minimal changes in spreads and liquidity, Binance witnessed net outflows of $1.53 billion between Nov. 21 and Nov. 23, as reported by DefiLlama.
The regulatory landscape presents risks and opportunities. Some view Binance’s actions as evidence of sufficient reserves, while others are concerned about the $4.3 billion fine facing Binance and its former CEO, Changpeng “CZ” Zhao. Notably, Bitcoin advocate Luke Broyles advised followers to withdraw their coins from exchanges.
Anyone that claims to know which snowflake will cause the avalanche is naieve.
However… The #Binance $4.3 BILLION fine is a really big snowflake atop a really big pile of snow.
Act accordingly.
Self custody now.#Bitcoin— Luke Broyles (@luke_broyles) November 23, 2023
Even if Binance continues operations and safeguards all client assets, the long-term effects of full compliance and increased scrutiny remain uncertain. Additionally, the relationship between Binance and stablecoin issuers like Tether (USDT), TrueUSD (TUSD) and Binance USD (BUSD) raises…
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