Ethereum (ETH) News and Talking Points
- Ether’s recovery from April 1 low continues – outperforms other crypto heavyweights.
- Talk that the SEC may label ETH, and Ripple, a security is weighing on the token.
Ether (ETH) Continues to Push Higher but Prices May Come Under Pressure
Ethereum’s (ETH) impressive rally from its April 1 low at $358 continues but has stalled in the last couple of days as traders wait-and-see if there is any ruling on the token from an SEC meeting being held this week. Traders will be concerned that if Ethereum is classified as a security, that exchanges that currently host ETH trading may pull-back as they would come under the regulatory umbrella of the SEC.
Ripple (XRP) is another token under SEC consideration and will also suffer badly if regulation hits – Ripple in the meantime remains a ‘crowded trade’ as we recently highlighted.
On the charts ETH continues to look positive, respecting the last month’s uptrend. We highlighted the ‘tea-cup’ bullish chart set-up recently – which subsequently played-out – and from a purely technical point of view the chart remains positive. The break above the 50% Fibonacci retracement of the September 2017 to January 2018 rally at $810 will allow the token room to move to $954 before the psychological level of $1,000 comes into play. On the downside $666 remains a healthy support level from a technical point of view.
Downside levels however will become invalid if the SEC rules ETH is a security and traders should keep tight, guaranteed, stops on any positions.
We discuss a range of cryptocurrency charts and price set-ups at our Weekly Cryptocurrency Webinar on Wednesdays at 12:00.
Ether (ETH) Daily Price Chart in US Dollars (August 22, 2017 – May 8, 2018)
Cryptocurrency Trader Resources – Free Practice Trading Accounts, Guides, Sentiment Indicators and Webinars
If you are interested in trading Bitcoin, Bitcoin Cash or Ether, Litecoin or Ripple check out our Introduction to Bitcoin Trading Guide
What’s your opinion on Ether – short-term pullback or bearish correction? Share your thoughts and ideas with us using the comments section at the end of the article or you can contact me on Twitter @nickcawley1 or via email at nicholas.cawley@ig.com.
--- Written by Nick Cawley, Analyst.
https://www.dailyfx.com/free_guide-bitcoin.html?ref-author=Cawley
