Ethereum price analysis: ETH/USD back above $700, the bulls eye $800; US Regulators to give a verdict on Ethereum’s fate
|- The news form SEC will shape Ethereum’s project future; other cryptos could be affected as well.
- Ethereum price immediate support is at $700, $680 will provide stronger support.
Ethereum price is correcting higher to correct the downside movement that had it briefly trade below $700 level on Monday 7. The crypto is now testing the resistance at $740, although the charts still indicate that it is down over 7% in the last 24 hours.
Cryptocurrency regulations in the US have sent mixed messages for some time now. The Security and Exchange Commission (SEC) has not been clear on the issue of some cryptocurrencies being security tokens. Ethereum (ETH) caught the attention of the regulators last week and today, May 7, is the day SEC and CFTC officials give away forward on the classification of digital assets. Ethereum co-founder Joseph Lubin, recently said that the impending regulations could shape the future of the Ethereum token. However, he added that they were not at all worried about classification as a security. Lubin said in a comment:
“We spent a tremendous amount of time with lawyers in the U.S. and in other countries, and are extremely comfortable that it is not a security; it never was a security”
Micheal Piwowar, a Commissioner at SEC has a different view from the above statement:
“Is an ICO a security? … so far, as our chairman has said, everyone that he has looked at, everyone I have seen is a security … Bitcoin itself is not a security but these customized tokens for these initial coin offerings, most of them are. There is some legitimate stuff going that is on and then there is literally the fraud ones.”
Well, we can go on and on about these security token issues and violations but the meeting today will provide a clear explanation on how the regulations in this sector will move on from now onwards.
Ethereum price analysis
Ethereum price has broken above the resistance at $730, besides, the moving averages gap is reducing to signal that ETH/USD could continue retracing the steps back towards $800. On the upside, the next target is $740, however, Ethereum price will encounter resistance $760. The RSI rests at 37 on the 1-hour chart. On the downside, an immediate support has been formed close to $700. Below this, $680 is a highlighted major support.
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