Ethereum (ETH) Price Analysis: Upside Break on SEC Official Comments

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Ethereum got a strong bullish boost thanks to remarks from a senior SEC official on how it’s not a security. Price busted through the descending trend line on the 1-hour time frame as an early indication that a reversal is underway.

However, the 100 SMA is still below the longer-term 200 SMA to signal that the path of least resistance is to the downside. In other words, the selloff is more likely to resume than to reverse.

The gap between the moving averages is also widening to signal strengthening bearish pressure. However, price is also climbing past the 100 SMA dynamic inflection point to indicate that buyers are starting to gain the upper hand. Price could test the 200 SMA dynamic inflection point at $550 next.

RSI is turning lower after reaching overbought levels, though, which means that sellers are returning while buyers take a break. Similarly stochastic is looking ready to head south so Ethereum could follow suit, possibly making a retest of the broken trend line at $480.

In a speech during a conference in San Francisco, SEC Corporation Finance Director William Hinman said that ethereum is not an investment to be regulated like stocks or bonds. He explained:

Based on my understanding of the present state of ether, the Ethereum network and its decentralized structure, current offers and sales of ether are not securities transactions.

He also suggested that bitcoin isn’t subject to this kind of regulatory framework either, adding that other tokens might also be exempt:

Over time, there may be other sufficiently decentralized networks and systems where regulating the tokens or coins that function on them as securities may not be required.

This removed the cloud looming for the industry over the past weeks as traders were wary that holdings would be subject to strict regulatory scrutiny.

The post Ethereum (ETH) Price Analysis: Upside Break on SEC Official Comments appeared first on Ethereum World News.

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