Tanya Abrosimova
Independent Analyst
- Ethereum bulls stopped short of 38.2% Fibo.
- CFTC decision looms large, keeping market players nervous.
Ethereum price bumped into resistance created by 38.2% FIbo of the decline from $1,593 to $360. Selling orders above the psychological $800 and on approach to the above said resistance pushed the coin back into the middle of $800-$700 range amid broad crypto-market sell-off.
The second largest cryptocurrency may be quite volatile today during US session as American regulators are set to decide whether it is a security or something else. While CFTC and SEC officers believe that it may have been born in what they call illegal stock issue, the founders and developers of Ethereum stick to the opposite opinion.
"We spent a tremendous amount of time with lawyers in the US and in other countries, and are extremely comfortable that it is not a security; it never was a security… many regulators that matter understand what Ethereum is,” Ethereum Foundation co-founder Joseph Lubin said during a tech conference in New Orlean.
Anyway, if the US regulators decide that ETH is a security, the consequences will be really far-reaching for all cryptocurrency segment.
Ethereum technical picture
The correction pushed ETH/USD below 50 and 100-SMA (hourly interval) at $794 and $778 respectively. This levels serve as short-term resistance zones, followed by recent high registered at $830. The support is created by $727 (2-0-SMA, hourly chart) and ultimate $700. As long as the coin stays above this area, the bulls have a chance to take it back to $800 in the nearest future.
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