Ethereum (ETH) Dropped 8% In The European Trading Session But Is Correcting Upwards

SEC news will determine the future of the Ethereum (ETH) project but other cryptocurrencies may also be affected. The ETH is now quoted at around $745 and its immediate support is $700, while a $680 level will provide stronger support.

The US cryptocurrencies regulators have been sending mixed messages for some time now

The Securities and Exchange Commission (SEC) has not been clear that some cryptocurrencies are security tokens. Last week, the Ethereum (ETH) team brought to the attention of the US regulators that today, May 7th, is the day that SEC and CFTC officials have to release the cryptocurrencies classification.

Ethereum co-founder, Joseph Lubin, recently said that impending regulations could shape the future of Ethereum tokens. However, he added that they were not at all concerned about classification as a security asset. Lubin said in a commentary:

We spend a great deal of time with lawyers in the U.S. and other countries, and we’re pretty sure it’s not a security asset; it’s never been a security asset.

On the other hand, Micheal Piwowar, a commissioner at the SEC, has a different point of view:

Is an ICO a security asset? So far, as our president has said, everyone he has looked at, everyone I have seen, is a security. Bitcoin (BTC) itself is not a security but these custom tokens for these initial coin offers, most of them are. There are some legitimate things going on and then… Literally, there are frauds.

Ethereum (ETH) price analysis

Ethereum (ETH) price is correcting upwards, trading now at approximately $745, after falling briefly below the $700 level in today’s European trading session when the ETH/USD dropped about 8%.

The gap between the moving averages is narrowing to indicate that the ETH/USD could continue to roll back to the $800 level. On the upside, therefore, the next target is the $760 level, as the first level for upward correction, the $740 level has been achieved.

On the downside, immediate support has formed around $700, while below this level, the $680 zone is a great support highlight.

Thus, Ethereum (ETH) is suffering today because of the SEC latency in giving a clear classification of cryptos but also due to the fact the Japenese announced stricter cryptocurrency regulations, thus affecting the whole cryptocurrencies market today.

 

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