Kraken SEC Lawsuit Could Push Ethereum Sky-High: $2000 Target in Sight?

Kraken has secured a restricted dealer license in Canada, marking a major step for crypto regulation. This decision comes as global lawmakers extend their grip on the industry following past failures like FTX. The approval allows Kraken to continue operations under strict guidelines. While Kraken moves forward in Canada, it still faces legal trouble in the U.S. The Kraken SEC lawsuit accuses the exchange of violating securities laws. This shift could influence Ethereum and other major cryptos. If clear regulations emerge, they might bring stability to the market, encouraging institutional investors. Many traders are watching to see how these policies shape Ethereum price prediction.

Kraken’s Canadian Approval and Its Market Impact

This major move has received registration from Canadian regulators. It allows them to continue operating in compliance with the country’s crypto regulation. The approval comes at a time when global regulators are improving oversight of crypto exchanges. This move strengthens Kraken’s position in Canada and provides more access to crypto services for regional clients. Kraken’s Co-CEO Dave Ripley shared the news on X:

Exciting news from one of @KrakenFX’s fastest growing markets.

Today, we secured a Restricted Dealer registration in Canada, which gives regional clients more access and more ways to create crypto wealth.

We’re committed to Canada – and look forward to leading the next wave of…

— Dave Ripley (@DavidLRipley) April 2, 2025

Alongside the registration, Kraken announced free Interac e-Transfer deposits for Canadian users, aiming to make crypto more accessible. The exchange revealed that its Canadian user base and team have doubled in the past two years, now managing over $2 billion CAD in client assets. Del Pozo, Kraken’s new North American GM, highlighted Canada’s growing crypto adoption. She stated that more investors and institutions are recognizing digital assets as part of the financial future.

Kraken’s registration follows a major shift in Canada’s crypto regulation. After stricter rules pushed some exchanges out, Kraken chose to comply, reinforcing its commitment to the market. Meanwhile, in the U.S. the Kraken SEC lawsuit remains unresolved, showing the contrast between regulatory approaches. This development could have a broader impact on the crypto market, including ETH. As regulatory clarity improves, investors may gain more confidence, potentially influencing Ethereum price prediction in the long run.

Ethereum Bulls Test $1,957.06 Resistance Amid Market Volatility

The trading day of April 2nd started with a downward trend, fueled by oversold conditions at 1:05 UTC, 2:15 UTC, and 5:25 UTC. Initially, Ethereum (ETH) found support at $1,851.99. A golden cross appeared on the MACD line at 6:30 UTC, signaling an upward trend. The price fluctuated, with an overbought condition at 9:00 UTC, followed by a death cross at 10:20 UTC, suggesting a downward move. The price climbed again in the afternoon, hitting another overbought condition at 15:40 UTC. The RSI indicator signaled an overbought situation at 20:15 UTC, leading to a resistance test at $1,957.06. 

Chart 1, analyzed by ShwetaCW, published on TradingView, April 3, 2025

As illustrated in Chart 1,  a death cross on the MACD at 20:30 UTC initiated a price drop, with oversold conditions from 22:10 UTC to 23:15 UTC. ETH found another support at $1,781.86, followed by an upward move into April 3rd. On April 3rd, an overbought condition appeared at 4:40 UTC, but a death cross at 5:20 UTC hinted at a potential downward move. Ethereum price prediction suggests that if the downtrend continues, ETH could break the $1,781.86 support. If momentum shifts, ETH could break $1,957.06 resistance and aim for $2000.

Kraken’s Canada Move & ETH’s Next Big Price Shift

Kraken’s approval strengthens its presence in Canada despite ongoing challenges like the Kraken SEC lawsuit. This move highlights the impact of crypto regulation on exchanges. Positive regulatory steps can boost market confidence. The news may influence major cryptos, including Ethereum. Based on Ethereum price prediction, if bullish momentum continues, ETH could break resistance at $1,957.06 and aim for $2000. However, further regulation could create market uncertainty.