Latest Ethereum News

In a report, the USD CFTC now defines smart contracts—that mostly run on platforms as Ethereum and Waves for example—as “a set of coded computer functions that can self-execute actions based on criteria being met or not met”. Smart contracts made it possible for different projects and even startups to tokenize, raise funds through investment or utility contracts.

It’s also the bone of contention because, through these smart contracts, regulators from all over the world are pushing for policy amendment to tame proliferation of fraud and issuance of tokens which they classify as securities. In the US, the SEC now has different ICOs and exchanges under their microscope and after settling with celebrities whom they accused of promoting securities, the SEC plan to publish a guide for coin issuers and for investors planning to invest on these tokens.

Now, since these “unregulated” projects have to find ways of sync with regulators’ requirements lest they are labeled as securities, the report by CFTC could speed up the learning curve amongst policymakers and law enforcers because it is their responsibility to know exactly what they are dealing with.

Remember, several projects now have to watch their backs partly because of their failure to do their due diligence and issue utility tokens and partly because of regulators blanket view that all ICOs are securities and they must step in to “protect investors”.

After 11 months of strong lower lows, ETH is still under immense sell pressure. Though trade range and bear momentum have since slowed down, the simple fact is that bears have the “prove” themselves before we recommend buys as we fade a dominant trend.

A simple glance at the charts and it is clear that not only are prices trading within a bear breakout pattern confirmed by week ending Nov 25 sell bar, but a whole bear bar closing below $160 points to underlying momentum.

Moving on, our trade plan will be pretty straightforward, search for selling opportunities in lower time frames as long as prices trend below $130. And assuming the undesirable print and prices close below $100 with strong market participation, we cannot discount chances of ETH prices dropping to lows of $1 or Q1 2017 lows.

As it is, we shall lay emphasis on how price action reacts at $100, an important support level and a sell trigger. From our iteration, sellers are in charge and for ETH/USD trajectory to shift from bearish to bullish then we need confirmation of Nov 28 Morning Star pattern as prices race above $130.

If bulls build enough momentum and this print out by the end of the week, then aggressive traders should get involved, initiating positions with first targets at $160, $250 and later $300. However, if that fails and sellers flow back driving prices below $100, then we shall trade as aforementioned.

All Charts Courtesy of Trading View

Disclaimer: Views and opinions expressed are those of the author and aren’t investment advice. Trading of any form involves risk and so do your due diligence before making a trading decision.

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