Bullish Reversal in Ethereum (ETH) Despite SEC War on Cryptos

Cryptocurrencies have been retreating since April, including Ethereum (ETH), but this digital coin has been holding up better than other major cryptos. The second leading cryptocurrency was initially finding support at the 50 SMA (yellow) on the daily chart, while after the next leg lower the 100 SMA (green) came into play.

The price bounced off that moving average which acted as support, but on Monday we saw a dive lower, with buyers testing the 100 SMA again after the SEC accused Binance of mishandling customer funds, providing false information to regulators, and misleading investors about operational safeguards.

The specific allegations include Binance mixing customer funds and covertly transferring them to a separate company controlled by Changpeng Zhao, the founder of Binance. These charges from the SEC contributed to the significant decline in value that day and Ethereum dipped below $1,800, piercing the 100 SMA. Yesterday SEC sued Coinbase for operating as an unregistered broker, to continue the war on cryptocurrencies.

Ethereum Daily Chart – The 100 SMA Held as Support

ETH bouncing above the 50 SMA now

But buyers came back and now ETH/USD is showing a reversal pattern as the weekend approaches. Ethereum (ETH) formed a bullish candlestick yesterday, which almost engulfed Monday’s candlestick. These candlestick patterns often indicate a potential bullish continuation. However, for Ethereum to confirm this, it needs to surpass the resistance level of $1,930 initially. If Ethereum manages to break above this resistance, it could potentially reach the price level of $2,150, which has not been seen this year.