Ethereum price analysis: ETH/USD enjoys recovery to $700, famous blockchain writer names the main obstacle for crypto legal adoption

Tanya Abrosimova
Tanya Abrosimova FXStreet
  • ETH/USD recovers from previous week's low.
  • William Mougayar says SEC know little about crypto.

Ethereum returned to $700 handle from $655 lo reached on May 18 amid general cryptocurrency sell-off. The recovery took the coin above 200-DMA at $683 and pushed to Sunday's high at$724. Currently. ETH/USD is trading at $714, mostly unchanged since the start of the day. The second largest coin with the market value over $71B has registered diminishing trading volumes ($2.2B for the recent 24 hours).

According to William Mougayar, famous writer on blockchain-related topics and advisor to the Ethereum foundation, regulators have difficulties with understanding cryptocurrencies, which create barriers on the way of their legal adoption.

Speaking to CNBC, Mougayar noted that SEC is trying to catch up with the fast-growing industry and educate themselves on the topic.

"Right now they are still grappling with it, and for them, the box that they play in is that they see all these cryptocurrencies as a security. But in reality, not everything is a security. They want everything to play in that box," he added criticising current position of SEC.

Ethereum technical picture

On the intraday level, ETH/USD is moving within a clear upside trend, above hourly MAs. The trendline coupled with 200-SMA (hourly chart) creates local support at $700, followed by $695. Once this area is cleared, May 18's low at $655 will come back into focus. On the upside, near-term resistance is created by $725 and $735 levels with an ultimate target at $800.

ETH/USD, the hourly chart

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