Ethereum's price surged back above $3,500 after ConsenSys announced that the U.S. Securities and Exchange Commission (SEC) is ending its investigation into whether ETH is a security.

Ether (ETH) was trading at $3,493 until ConsenSys posted on June 19 that the SEC is closing its probe, a development that crypto commentators have called "huge for the space."

“The Enforcement Division of the SEC has notified us that it is closing its investigation into Ethereum 2.0,” ConsenSys reported.

Within 20 minutes, Ether rose approximately 1.4% to $3,541, breaking the critical $3,500 level, according to CoinMarketCap data. At the time of publication, ETH is trading at $3,531.

The $3,500 level has been pivotal for traders, as ETH has frequently fluctuated around this mark. Over the past 30 days, it has served as a key support level.

The slight increase following ConsenSys' announcement reflects heightened investor confidence, potentially alleviating recent concerns about potential securities law violations, including ETH transfers on the network if the SEC had decided to take action.

“This means that the SEC will not bring charges alleging that sales of ETH are securities transactions,” ConsenSys added, prompting widespread celebration among crypto commentators.

“Huge win for Ethereum,” stated Tom Shaughnessy, founding partner of Delphi Ventures.

Christopher Perkins, president of CoinFund, added, “A major unlock for the Ethereum ecosystem as we enter a new regulatory regime for crypto.”

In response to the announcement, Ether whales demonstrated confidence, with blockchain analysis firm Lookonchain reporting that a whale purchased 5,603 ETH, valued at about $19.6 million.

This development comes just over a month after the SEC approved spot Ether exchange-traded funds (ETFs) in the United States.

There is growing optimism that the final stage before trading—approval of the applicants' Form S-1 registration statements—is also progressing.

SEC Chair Gary Gensler expects the commission to approve these filings “sometime over the course of this summer.”