ETH Settle Above $100, Recovery Because of Regulator Guidelines?

ETH Settle Above $100, Recovery Because of Regulator Guidelines?

There is no doubt that Ethereum is a necessary upgrade of its predecessor—Bitcoin. Ethereum is more than a cryptocurrency. It is a smart contract platform. The decentralized, evolving network is a go-to launching pad where projects can tokenize their assets and depend on what is on offer, regulators like the SEC can get involved.

Read: Fake MetaMask App Appears on Google Play In An Attempt to Steal Cryptocurrency

In a system that is designed to operate autonomously in a self-regulating environment where the code is law without third parties, adherence of jurisdiction-based laws and regulation is counter-intuitive representing everything that is not blockchain. Unfortunately, that is where most initial coin offering projects find themselves in: At the mercy of regulators like the SEC.

As a new funding model that relegates the need of VC and even by-pass applicable laws, investors flocked into token issuing platforms pumping prices of native coins. The result saw prices of ETH skyrocket while tokens which were viewed as potentials registered double-digit gains despite scalability concerns rocking and even discouraging investments.

All the same, regulators intervened and, in a bid, to prevent speculative bubbles, they cracked down on projects deemed to be selling securities to unsuspecting investors. The SEC even went aftermarket makers and one of the founders of EtherDelta–Zachary Coburn, had to settle with hefty charges for allegedly operating without an operating license and creating a marketplace for securities which is against laid down securities law.

Also Read: Brazil in Financial Crisis Turns to Crypto For Solace

However, all this is about to change and as the commission is keen on providing guidance on what they deem to be securities and what’s not, the market could recover and prices snap back to 2017 but with controlled investment and apprehensive investors keen not on getting entangled with the SEC.

ETH/USD Price Analysis

Thanks to supporting fundamentals, ETH bulls are back. After Friday’s upswings, prices are vibrant and up 12.6 percent from last week’s close. This is overwhelmingly bullish and is the kind of price re-adjustment that ETH bulls were waiting for.

When we zoom in and analyze price action more keenly, we notice that ETH did find support from the psychological $100 mark. Not only is this a round number but is the level where ETH found support when prices slid in January.

Therefore, as we can see, this makes sense that there has been confirmation of ETH bulls at a round number and inside the 61.8 percent and 78.6 percent Fibonacci retracement levels of Dec 2018 high lows. The zone as we mentioned in our previous ETH/USD price analysis is important. Because the correction is deep, it is likely that bulls will drive prices towards $170. However, before we load up, prices must first clear $135. After that, traders can buy on pullbacks with first targets at $170—previous breakout level with fitting stops at $130.

All Charts Courtesy of Trading View—BitFinex

Disclaimer: Views and opinions expressed are those of the author and aren’t investment advice. Trading of any form involves risk and so do your due diligence before making a trading decision.

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