what support for ETH after its fall below 1500 dollars?

The price of ETH, which is the second most important cryptocurrency in the ecosystem, has just broken below the threshold of $1,500. This with its lowest level for a month, located at $1,460 this Monday. The current price is equivalent to a drop of almost 2% over the day, with losses amounting to 13% in comparison with the January highs, gravitating in the zone of $1,700.

However, these movements since the beginning of the year have left an appreciable mark of 25% on the upside for Ethereum, but it is important to keep in mind that these gains could quickly be reversed by a sharp change in the direction of the crypto market.

Ethereum: legal concerns

The crypto market continues to experience a wave of concern over aggressive measures by US regulatory agencies. Reports came out this weekend and they indicate that the Securities and Exchange Commission (SEC) will sue Paxos Trust Co, the US issuer of the BUSD stablecoin, for violating investor protection laws by providing unregistered stablecoins.

This decision has come under heavy criticism from the crypto community, as they are rather skeptical about how investors could expect to profit from buying a stablecoin like BUSD, since it is precisely designed to have a stable price.

The move comes after exchange Kraken reached an agreement with the SEC and shut down its crypto staking program, which had otherwise also been classified as an unregistered security by the SEC.

Since the transition of the Ethereum blockchain to Proof of Stake (PoS) operation in September 2022, the tightening of US regulatory measures against services offering staking in the United States has generated a climate of uncertainty for validators of the Ethereum network.

Jacob Blish is the Business Development Manager for the Decentralized Autonomous Organization (DAO) that manages the protocol of decentralized finance (DeFi) Lido Finance, and he recently said that the SEC’s decision to strongly sanction the principle of staking could have uncertain consequences for the future of decentralized finance. Note that Lido Finance is the largest decentralized finance protocol offering liquid ETH staking services.

Separately, executives at Coinbase, which is the largest US-based crypto exchange and also operates an ETH-linked staking service, said over the weekend that they would ” very happy to defend” staking in US courts.

Price predictions: what next for ETH?

For now, Ether has found support at its 50-day moving average (DMA) around $1,470but it is possible that the price will test the 200-day DMA located at $1,440 if regulatory concerns continue to disrupt the market in the short term.

However, traders may be reluctant to continue any further downward momentum on Monday, due to the upcoming release of U.S. Consumer Price Index (CPI) data for the month of January. provide a better understanding of the policy outlook for the US Federal Reserve.

If the trend is favourable, then ETH could get some breathing room and rally back towards the lows. $1,500. However, analyzes of technical indicators point to a potential decline towards the next resistance zone, with this one hovering around the $1,350a control threshold where the December high, the 100-day DMA and the uptrend from November to December are located.

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Disclaimer: The “Industry Talk” section presents the views of crypto industry players and is not part of the editorial content of Cryptonews.com.

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