Ethereum began the week by consolidating losses from the previous week, which was marred by the US SEC’s enforcement.
Gary Gensler, chairman of the Securities and Exchange Commission, states in a video extensively shared on social media that the two most prominent cryptocurrencies, Ethereum (ETH) and Bitcoin (BTC), are not securities.
Even though the video is from 2018, Gensler specifies that “over 70% of the crypto market is Bitcoin, Ether, Litecoin, and Bitcoin Cash. Why did I give these four names? They are not investments.”
According to a related report by Cointelegraph, Gary Gensler was a professor at the time at the prestigious Massachusetts Institute of Technology (MIT). Before his eventual appointment as Chairman of the Securities and Exchange Commission (SEC), the footage dates back approximately two years.
In stark contrast to his previous position, Gensler’s subsequent actions at the SEC paint an entirely different picture. In recent months, the regulatory body has launched an onslaught of crypto-related enforcement initiatives.
In the most recent disputes, Gensler listed 68 cryptocurrencies as securities, including Cardano (ADA), Solana (SOL), and Polygon (MATIC). In addition, the regulatory chair once stated that all cryptocurrencies besides Bitcoin are securities, which contradicts his 2018 statement.
Chair Gensler in 2018 at a Bloomberg conference in NYC:
“Bitcoin. Ether. Litecoin. Bitcoin Cash. Why did I name those four? They’re not securities.”
What’s Goldman Gary going to say about this one? Deep fake? pic.twitter.com/p7DJlYkJIt
— Ryan Selkis 🪳 (@twobitidiot) June 12, 2023Considering Price Profitability of Ethereum This Week
In the aftermath of the US SEC’s intensified crackdown on the cryptocurrency market, Ethereum, like many of its peers, began the week by consolidating losses from the previous week.
As Coinbase, Binance, and the foundations of specific cryptocurrencies such as ADA, SOL, and MATIC begin their respective legal conflicts, investors may wish to adjust their cryptocurrency portfolios.
ETH is trading at $1,750 at the time of writing, with $1,730 as a strong support level. Aayush Jindal, an analyst at NewsBTC, believes that Ether needs only to regain support at $1,800 to validate a more significant recovery move to $2,000.
Ethereum must first overcome resistance at $1,760 to close the gap to $1,800. The Moving Average Convergence Divergence (MACD) indicator displays a strong purchase signal.
As long as the MACD line in blue remains above the signal line in red, traders contemplating new long positions in the Ethereum price would be encouraged to execute their orders.
Now that the dust has subsided from the SEC’s actions against Binance and Coinbase, the on-chain analytics platform Santiment suggests that the cryptocurrency market could begin to rise. The recovery is anticipated to continue “until the next lawsuit-related development.”
👨⚖️ With traders still very much aware of the #SEC going after #Binance and #Coinbase, the mass hysteria has at least settled down. Until the next developments with the lawsuits, we could see some gradual rising of prices back to pre-crash levels. https://t.co/Za7tchgeUx pic.twitter.com/BSZEHrjQNP
— Santiment (@santimentfeed) June 12, 2023Moreover, most altcoins experienced extreme capitulation last week, resulting in losses for many speculators and investors. The steep price decline will likely increase whale accumulation. If this accumulation trend persists, “there is reason to believe that a strong rebound could occur,” says Sentiment.
