Ethereum Flat on US SEC Enforcement Rumors: Drop To $2,600 Possible
Ethereum is slowing down despite gains of mid this week. Rumors of the SEC classifying ETH as a security is heaping pressure on price
Ethereum prices remain depressed when writing, looking at the performance in the daily chart. Even though traders are optimistic, the failure of bulls to follow through after March 20 should be a concern. As it is, ETH has resistance at around the $3,550 level, though there is a double-bar bullish pattern, signaling strength. On the lower end, support is at $3,150.
In the past 24 hours, ETH is down 2%, pushing weekly losses by 6%. Changing hands at around $3,450, sellers have the upper end in the short term. Nonetheless, the uptrend remains from a top-down preview. Presently, ETH’s market cap is lower, standing at over $414 billion, shrinking by 3%. At the same time, trading volume is down 39% to approximately $19 billion.
The following Ethereum news developments may influence price action:
- The United States Securities and Exchange Commission (SEC) is in focus. Most crypto supporters are angry after the SEC’s decision to reportedly investigate Ethereum and classify it as security. Some, including the lawyer representing a16z crypto, think personnel at the agency’s enforcement division are incompetent.
- Even with prospects of a spot Ethereum ETF approval diminishing, supporters remain bullish on what lies ahead. Most cite the role played by Ethereum and the fact that any action taken by the SEC on the platform might be consequential, sending reverberations across the global financial markets.
Ethereum Price Action
ETH/USD is stable despite the general uncertainty. Technically, the uptrend remains clear in the daily chart.
However, the uptrend is slowed by the failure of buyers to push the coin above the middle BB—or by dynamic resistance.
The liquidation zone lies between $3,500 and $3,700. A convincing, high-volume close above this level might see ETH inch closer to $4,000.
Conversely, any sharp dump below the double-bar formation at around $3,100 and $3,200 might see Ethereum drop to $2,600.
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