© Reuters
Investing.com – , the world’s second largest cryptocurrency, was considered a commodity until September 2022, after then-SEC Chairman William Hinman classified Ether as such during of a speech in 2018.
Last September, however, a fundamental change took place with the merger, which had the consequence of placing the cryptocurrency in the crosshairs of the American securities regulator. With the merge, network transaction processing has shifted from proof-of-work to proof-of-stake. Since then, every Ether holder can participate in stacking and receive a return in exchange.
From the perspective of new SEC Chairman Gary Gensler, the facts have thus been changed such that Etherum should be classified as a security. Over the past few months, he has repeatedly stated that it should be assumed that all cryptocurrencies except , are securities and therefore fall under the jurisdiction of the SEC.
On the other hand, the United States Commodity Futures Trading Commission (CFTC) seems to assess the situation differently, which is explained by the fact that there is no legal regulatory framework in the United States which clarifies this question beyond any doubt.
On March 27, the CFTC said in its lawsuit against Binance that the exchange trades in “digital assets that are commodities, including , ether, and for persons residing in the United States.”
Ethereum Technical Price Benchmarks
Ethereum is currently down -1.64% to a price of $1726, while the weekly loss stands at -0.91%.
Yesterday, the cryptocurrency broke the daily close support of the 23.6% Fibo retracement of $1,738 and recorded its lowest daily closing price since March 17.
The door is therefore open for a deeper downside correction. The next support is at the 38.2% Fibo retracement at $1668, followed by the 50% Fibo retracement at $1611.
Only if the bulls manage to sustainably reclaim the 23.6% fibo retracement can the March 23rd high of $1852 be targeted. Beyond that, room would open up for an extension of gains towards the 123.6 percent Fibo extension of $1965, resistance bolstered by the psychological $2000 threshold.
By Marco Oehrl