On Wednesday, Ethereum (ETH) joined the broader market in positive territory, rising 1.07%, to end the day at $1,793. Market reaction to the news that SEC Chairman Gary Gensler attended a subcommittee hearing supported a breakout morning session. Technical indicators remain bullish, with $2,000 in sight.
Ethereum (ETH) was up 1.07% on Wednesday. Following a 3.39% rally on Tuesday, ETH ended the day at $1,793. ETH revisited the $1800 handle for the first time in three sessions.
A mixed start to the day saw ETH fall to a low of $1,773 in the first hour. Moving away from the first major support level (S1) at $1,719, ETH rallied to a mid-morning high of $1,827. ETH broke above the first major resistance level (R1) at $1,813, before pulling back to end the day at $1,793.
CFTC and SEC Attempts to Regulate Through Enforcement Boost ETH Demand
This week, an increase in regulatory activity failed to have the desired effect on ETH and the broader crypto market.
News that the CFTC filed a lawsuit against executives at Binance, CZ, and Binance briefly sent ETH into the red. The SEC’s activity has also failed to spook investors. However, the news that US lawmakers targeted the SEC and SEC Chairman Gary Gensler supported a bullish midweek session.
On Wednesday, House Financial Services Chairman McHenry announced that Gary Gensler will appear before a digital assets subcommittee on April 18 to discuss his rulemaking and approach to digital assets.
Investors expect US lawmakers to question the SEC chairman as more cryptocurrency-related companies explore options for moving offshore. The latest mistake by US regulators has been the inability to agree on whether ETH is a commodity or a security. If the regulators cannot agree, then there is little chance that crypto exchanges will be able to navigate the murky regulatory waters.
This month, SEC Chairman Gary Gensler called out all cryptocurrencies except BTC securities, while the CFTC labeled ETH, LTC, and BTC, and stablecoins including BUSD, as commodities in their lawsuit. against Binance.
The latest regulatory moves could also favor a Ripple victory in the ongoing SEC vs. Ripple case.
Ethereum (ETH) Price Action – Technical Indicators
ETH rose 0.07% to $1,795. A mixed start to the day saw ETH rally to an early high of $1,830, before falling to a low of $1,766. ETH tested the first major resistance level (R1) at $1,822, and the first major support level (S1) at $1,768.
ETH needs to move through the $1,798 pivot, to re-target the first major resistance level (R1) at $1,822, and the morning high of $1,830. A return to $1,800 would signal a breakout session. However, crypto news leads need to be crypto-friendly to support a breakout.
In the event of a prolonged rally, the bulls would likely test the second major resistance level (R2) at $1852. The third main resistance level (R3) sits at $1,906.
Ethereum has broken above the 50-day EMA, currently at $1764. The 50-day EMA has turned away from the 100-day EMA, with the 100-day EMA pulling away from the 200-day EMA providing bullish signals.
A hold above S1 ($1,768) and the 50-day EMA ($1,764) would support a break of R1 ($1,822) to the target of R2 ($1,852). However, a drop-through S1 ($1,768) and the 50-day EMA ($1,764) would give the bears a run to S2 ($1,744) and the 100-day EMA ($1,736). A drop through the 50-day EMA would send a bearish signal.
By Audy Castaneda