Ether (ETH) Price Stall; Rattled by Ongoing SEC Talk
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.
IG Client Sentimentshow clients remain heavily long ETH but recent changes give a mixed view for traders going forward. Download the guide for free to see how sentiment changes can help you assess a market.
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)
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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 firstname.lastname@example.org.
--- Written by Nick Cawley, Analyst.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.