The U.S. Securities and Exchange Commission (SEC) has officially closed its investigation into whether Ethereum (ETH) should be classified as a security. This decision has been hailed as a major victory for the Ethereum ecosystem and the broader cryptocurrency market.

Consensys, a leading blockchain technology company, believes the SEC's withdrawal from the Ethereum investigation has removed a significant burden that threatened the network's survival. The "momentous" SEC retreat has settled the dust from negative regulatory concerns regarding ETH as a security.

Observers are now closely watching how Ether's price will react to this clearer regulatory path. Conor O'Neill, from investment analytics firm Blockcircle, believes the removal of the "major regulatory barrier" for Ethereum sets a significant precedent for regulators worldwide.

The expected launch of spot Ether exchange-traded funds (ETFs) on July 2 is also expected to have a significant impact on ETH's price. Traditional markets are anticipated to inject capital into these ETFs, leading to higher demand for Ether and potentially boosting its price.

However, the SEC has imposed certain conditions on the ETF issuers, such as prohibiting them from offering Ether ETFs with staking features. This could potentially harm Ethereum's long-term performance as an institutional asset.

The SEC's decision to halt its Ethereum investigation may also benefit other altcoins that have faced similar regulatory scrutiny. Projects in the decentralized finance (DeFi) sector, as well as layer-2 chains, could potentially see positive impacts.

Overall, the SEC's withdrawal from the Ethereum investigation and the impending launch of spot Ether ETFs signal a pivotal moment for the cryptocurrency market. Investors are eagerly anticipating the potential surge in Ether's price and the broader implications for the industry.