- ETH / USD has recovered from recent lows but the bullish momentum is weak.
- Regulatory crackdown on illegal scams and Ico could increase the pressure on ETH.
Ethereum changes hands at $ 136.55, gaining 3.5% from this hour on Wednesday. The third largest currency with a market value of $ 14 billion hit the fund at $ 124.25 at the start of this week before the market stabilizes. Despite a recovery, the upside impulse is impressive, especially when compared to the scale of decline.
Technical framework of Ethereum
At the intraday level, ETH / USD is supported by the Fibonacci retracement level of 38.2% (daily) to $ 134.00. Once eliminated, the psychological area of $ 130.00, strengthened by Pivot Point Monthly Support 3, will come into focus. A lower sustainable movement will increase downward pressure with the next target at $ 124.48 (Wednesday low).
The relative strength index (4 hours) remains flat, close to the overbought territory; the moment is not seen anywhere during the quiet hours of Asia, which means that the recovery may be limited. The bulls must take the price at least above $ 140.00 to mitigate the immediate downward pressure and create a set up for a sustained recovery.
Basically, the landscape appears rocky for Ethereum while the US Securities and Exchange Commission tightens the grip on ICO shading and illegal security offers disguised as symbolic sales. Recently, the governor has loaded two startups that sell $ 27 million token based on blockchain ethereum. The promoters of ICOs will have to return the money to investors, which could lead to an increase in ETH sales.
In a separate case, the Colorado securities division repressed four ICO scam projects that gave misleading promises and lied to their investors.
Read more: Miners and Ico are killing Ethereum
ETH / USD, 4-hour chart