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Ethereum struggled to erase losses from the SECs enforcement action on two of the largest crypto exchanges in the ecosystem, Binance and Coinbase. The altcoins price climbed back above the key $1,800 level; ETH is trading at $1,877 at the time of writing.

While mainstream cryptocurrencies took a hit after the US financial regulators actions, Layer 2 tokens, Optimism (OP), Arbitrum (ARB) and Immutable X (IMX) yielded gains for holders. The price rallies in Layer 2 tokens are likely a spillover effect of decentralized exchanges popularity after the legal woes faced by Binance and Coinbase.

Ethereum networks largest scaling solution, MATIC, wiped out its gains from the past week in response to the US Securities & Exchange Commissions (SEC) crackdown on the token. The SEC deemed MATIC a security in its lawsuit against both crypto exchanges Binance and Coinbase.

MATIC whales are shedding their holdings of the Layer 2 tokens and the selling pressure on Polygons native crypto is climbing across crypto exchange platforms. This could result in further losses for MATIC holders in the short term.

Coinbase is still reeling from the bearishness of the last two days as its stock attempts to recover. But as the worlds second-biggest cryptocurrency exchange bounces back, it seems to have found a way to bring the Securities and Exchange Commission (SEC) to answer some crucial questions it has been avoiding for a year now.

The Chief Executive Officer (CEO) of Coinbase, Paul Grewal, tweeted on June 6 that the Third Circuit issued a short order in Coinbases mandamus action today. The court brought the order forward following the SECs announcement of filing a lawsuit against Coinbase for violating Securities laws.

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Cryptocurrencies Price Prediction: Ethereum, MATIC European Wrap 7 June - FXStreet