Ethereum traders are sending SOS signals as ETH/USD is in distress, losing over 7%; Judge Raymond Dearie to blame?

Ethereum is nosediving like a jet with a total engine failure. The second largest coin by market value touched $167.10 on Wednesday before recovering to $169.60 by the time of writing. However, the situation is changing rapidly as the downside momentum is gaining traction on a breakdown below a critical technical level. Currently, Ethereum is 7% lower since the beginning of the day. The coin has lost 11% on a daily basis and over 46% in one month.  

When it comes to Ether, the overall bearish sentiments on the cryptocurrency markets are intensified by New York federal judge ruling that cryptocurrency-related fraud case can be covered by Securities Exchange Act. This is the first court decision to address the issue that might set a precedent for future cases, where securities Law will be applied to cryptocurrency cases.

Basically, it means that the court confirmed that the digital assets could be treated like securities, which may lead to far-reaching consequences for ICO market. 

ETH/USD, 30-min chart