Ethereum's Bullish Momentum and Tornado Cash's Resurgence

On July 10, Ethereum embarked on an upward trend as signs emerged that regulators might approve spot Ether ETF applications. This momentum saw Ethereum leading the market with a 9% surge, reaching $3,680.98 and peaking at $3,835.43 earlier in the day. Bitcoin followed suit, rising by 2% and trading around $71,350.

Regulatory Shifts and Market Response

Issuers and exchanges have updated their documentation, suggesting that the U.S. Securities and Exchange Commission (SEC) may be re-evaluating its stance on spot Ether ETFs. Previously deemed unlikely to gain approval, final decisions on applications from VanEck and Ark Invest are now eagerly anticipated.

In a notable move this May, the SEC approved updated 19b-4 filings for Ethereum ETFs, marking a significant step towards their potential approval. Many analysts expect the SEC to greenlight Ethereum ETFs sometime this year.

Ethereum Price Analysis

Ethereum’s current price of $3,492 reflects a 1.8% increase in the past 24 hours, influenced by market trends and investor sentiment. It is expected to oscillate between $3,500 and $3,750 in the near term. Since its inception, Ethereum has experienced significant price swings, reaching an all-time high of $4,200.86 in May 2021.

Tornado Cash's Unexpected Comeback

Meanwhile, Tornado Cash, an Ethereum-based mixer, has seen a remarkable resurgence. Despite ongoing sanctions from the U.S. Office of Foreign Assets Control (OFAC), Tornado Cash has attracted nearly $2 billion in deposits this year.

Data from Flipside Crypto reveals that Tornado Cash received approximately $1.9 billion in deposits in the first half of the year, a 50% increase over the total deposits for all of 2023. In August 2022, the U.S. Treasury's OFAC sanctioned Tornado Cash for allegedly facilitating money laundering for cybercriminals, especially North Korean hackers.

This sanction led to a significant drop in Tornado Cash's activity, with volumes plummeting by about 85% in 2023. Despite these challenges, Tornado Cash remains a tool for illicit actors. While many North Korean hackers have transitioned to traditional Bitcoin mixers, some still use Tornado Cash.

Conclusion

Ethereum's price movements and the ongoing developments around ETF approvals highlight the dynamic nature of the cryptocurrency market. Simultaneously, Tornado Cash's unexpected resurgence underscores the complexities of regulatory enforcement in the crypto space. Investors and regulators alike continue to navigate this evolving landscape, balancing innovation with security concerns.