Aaryamann Shrivastava
FXStreet
- Ethereum noted such bullishness for the first time in more than a month, rising by over 14%.
- The push in prices helped ETH close above the short-term resistance line, flipping it into support.
- CFTC chairman Rostin Behnam continues to label ETH as a commodity, while SEC sticks to calling it a security.
For the first time in weeks, the crypto market did well for itself, adding over $40 billion to market capitalization within 24 hours. Many cryptocurrencies joined the rally led by the king coin, Bitcoin, and altcoin king, Ethereum. Although along with the positive market moves, the two assets noted the bullish response from an interesting announcement as well.
Ethereum and Bitcoin are not securities
The chairman of the Commodity Futures Trading Commission (CFTC) declared this Tuesday that both Bitcoin and Ethereum are commodities. Upon being asked whether CFTC or Securities and Exchange Commission (SEC) would hold more power over either one of the other, CFTC chairman Rostin Behnam stated,
“It’s a pretty cynical view to suggest two agencies can’t figure it out and work together.”
He added, saying that in his belief, both the major cryptocurrencies BTC and ETH are commodities, but SEC chair Gary Gensler wouldn’t agree to the same.
In the past, Gensler has also agreed with the notion of Bitcoin being a commodity but considers ETH and similar proof-of-stake consensus cryptocurrencies to be labeled securities.
However, as the crypto regulation space in the United States develops, these differences could come to an end.
Ethereum takes a hike
While Ethereum’s classification may still be uncertain, its trajectory seems to be getting clearer. Over the last week, ETH’s price has seen a 14.62% rise, bringing the altcoin king to $1,489. On the four-hour time frame, this rise led to ETH breaching the month-long resistance level and closing above it.
ETH/USD 4-hour chart
The intra-day fluctuations on the daily chart noted ETH touched $1,500 at one point. However, this rise has now placed Ethereum closer to being overbought. On the Relative Strength Index (RSI), the area above 70.0 is a trend reversal trigger zone, and as long as ETH stays away from it, it can sustain this rise.
ETH/USD 1-day chart
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Is Altcoin Season here as Bitcoin reaches a new all-time high?
Bitcoin reaches a new all-time high of $98,384 on Thursday, with altcoins following the suit. Reports highlight that the recent surge in altcoins was fueled by the victory of crypto-friendly candidate Donal Trump in the US presidential election.
Shanghai court confirms legal recognition of crypto ownership
A Shanghai court has confirmed that owning digital assets, including Bitcoin, is legal under Chinese law. Judge Sun Jie of the Shanghai Songjiang People’s Court shared this opinion through the WeChat account of the Shanghai High People’s Court.
BTC hits an all-time high above $97,850, inches away from the $100K mark
Bitcoin hit a new all-time high of $97,852 on Thursday, and the technical outlook suggests a possible continuation of the rally to $100,000. BTC futures have surged past the $100,000 price mark on Deribit, and Lookonchain data shows whales are accumulating.
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange
Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.
Bitcoin: New high of $100K or correction to $78K?
Bitcoin surged to a new all-time high of $93,265 in the first half of the week, followed by a slight decline in the latter half. Reports highlight that Bitcoin’s current level is still not overvalued and could target levels above $100,000 in the coming weeks.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.