While officials from the US Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) were busy on Monday, deciding whether Ethereum (ETH) should be subjected to the same standards and regulations as securities, the cryptocurrency tested a key support level before erasing intraday losses. Could Ethereum break the key resistance level? Read on!
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What’s Going on?
All eyes were on a meeting on Monday where U.S. regulators were supposed to discuss cryptocurrencies. The main question during the meeting was whether Ethereum’s 2014 ICO—which was not registered with the SEC, should be considered as a security. The fact that many investors bought the tokens speculating that it will rise in value sure makes it seem like a security.
Ether’s Price Action
The bullish bets helped Ethereum reach an all-time-high level of $1,423 back in January 2018 before dropping back down to as low as $363.
Ethereum’s value versus the US dollar is currently in the process of a correction and has recently crossed above the daily Ichimoku cloud But after reaching the 50% Fibonacci retracement level at $822 over the weekend, it again showed signs of weakness with the bears testing the 38% Fibonacci level of $685 during Monday’s trading day.
From a technical point of view, we are currently in a wait-and-see mode. A break above the key 50% Fibonacci level could indicate the current uptrend is here to stay, and we could see gains towards $927 and $1,071 by the end of May.
A break above the key 50% Fibonacci level could indicate the current uptrend is here to stay, and we could see gains towards $927 and $1,071 by the end of May.
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