- Ethereum price faces major resistance at $2,142 and $2.648 levels
- The US SEC has submitted a formal interpretation of how federal securities laws apply to certain crypto assets and related transactions.
- The 22% fear and greed sentiment towards cryptocurrencies suggests that bearish sentiment among market participants remains intact.
$ETHThe second-largest cryptocurrency by market capitalization rose more than 7% to $2.129 on exchanges on Wednesday. This buying pressure coincides with a broader market recovery amid large-scale short selling liquidations, and the Securities and Exchange Commission submitting commission-level interpretations to OIRA clarifying how federal securities laws apply to crypto assets and trading. Following this momentum, Ethereum price is hinting at a bullish breakout from the key resistance area.
SEC Cryptocurrency Guidance Advances as Cryptocurrency Breakout Fuels Market Recovery
On Wednesday, the cryptocurrency market saw significant capital inflows, with the market capitalization reaching $2.6 trillion. The rally was amplified by forced liquidations in the derivatives market as Bitcoin prices topped $70,000.
The buying pressure gained further momentum after the US SEC filed a formal interpretation with the Office of Information and Regulatory Affairs outlining how federal securities laws apply to certain types of crypto assets and related transactions.
This move announced by the SEC today is a committee-level interpretation, as opposed to one issued at the staff level, and speaks to its recognition of its importance to the crypto market. Journalist Eleanor Terret emphasized that the document is separate from the agency’s ongoing rulemaking efforts related to the provision of crypto assets.
After OIRA completes its interagency review process, a vote of three members is required to proceed with the interpretation.
“As Chairman Atkins stated, consistent with the Market Structure Act, the Commission will consider interpretive guidance regarding the classification of cryptoassets as tokens to ensure that investors and innovators have a clear understanding of their regulatory obligations,” an SEC spokesperson said.
This type of interpretation does not change existing law, but provides the Commission’s view on its application in the field of digital assets.
Ethereum Price Challenges Major Resistance in Consolidation Trend
As of this writing, Ethereum price has increased by 7.3% and is currently trading at $2,110. Today’s rally has buyers attempting a bullish breakout from the range resistance at $2,142 on the daily chart.
Over the past three weeks, Ethereum price has been hovering within the horizontal levels of $2,142 and $1,810, reflecting a lack of clarity from buyers to sellers as to which direction will drive the sustainable trend.
However, the momentum indicator RSI has returned to 51%, underscoring the return of bullish sentiment in the market. A break above this range will further accelerate the buying pressure and lead to stronger buying. $ETH It could rise 14% to $2,400.
The aforementioned level current coincides with a descending resistance trendline that is continuing the ongoing correction trend. $ETH. Breaking through this barrier bullishly is critical to driving a sustainable rally.
$ETH/USDT -1 day chart
On the other hand, if sellers continue to adhere to the above-mentioned resistances, buyers could risk an extended correction trend and another breakout from $1,000.
