- The Ethereum price faces key resistance at $2,142 and $2.648 levels
- U.S. SEC submitted a formal interpretation on how federal securities laws could apply to specific crypto assets and related transactions.
- The crypto fear and greed sentiment at 22% suggest an intact bearish sentiment among market participants.
ETH, the second largest cryptocurrency by market capitalization, bounced over 7% during Wednesday’s to current exchange hands at $2.129. The buying pressure aligns with broader market recovery amid the massive short-liquidation and Securities and Exchange Commission submitting a Commission-level interpretation to OIRA clarifying how federal securities laws apply to crypto assets and transactions. Following the momentum, the Ethereum price teases a bullish breakout from the key resistance area.
SEC Crypto Guidance Progresses as Crypto Breakout Drives Market Recovery
On Wednesday, the crypto market witnessed a notable inflow which pushed its market cap to $2.6 Trillion. The rally was amplified by forced liquidations in the derivatives market as Bitcoin price breaks above $70,000.
The buying pressure gained further traction as the US SEC filed a formal interpretation with the Office of Information and Regulatory Affairs outlining the way federal securities laws apply to certain types of crypto assets and related transactions.
This move, posted today by the SEC, is a Commission-level interpretation as opposed to one issued at the staff level, which speaks to its perceived importance to the crypto market. Journalist Eleanor Terrett highlights that the document is separate from the agency’s ongoing rulemaking efforts related to crypto asset offerings.
After the interagency review process is completed at OIRA, the interpretation requires a vote of the three commissioners for it to proceed.
An SEC spokesperson said: “As Chairman Atkins said, the Commission will consider interpretive guidance around a token taxonomy for crypto assets – in line with market structure legislation – to ensure that investors and innovators have a clear understanding of their regulatory obligations.”
Interpretations of this kind do not change existing laws but give the Commission’s view of their application in the digital asset space.
Ethereum Price Challenges Major Resistance of Consolidation Trend
By the press time, the Ethereum price is up 7.3% to currently trade at $2,110. With today’s uptick, the buyers attempt a bullish breakout from a range resistance of $2,142 in the daily chart.
Over the past three weeks, the Ethereum price has been resonating within $2,142 and $1,810 horizontal level, reflecting a lack of clarity from buyers to sellers to drive sustainable trend in either direction.
However, the momentum indicator RSI back to 51% accentuates the restoring bullish sentiment in the market. An upside breakout from this range will further accelerate the buying pressure and bolster ETH for a potential 14% surge to $2,400.
The aforementioned level current coincides with a downsloping resistance trendline that has been carrying the ongoing correction trend in ETH. A bullish breakout from this barrier is crucial to drive a sustainable rally ahead.
On the contrary, if the sellers continue to defend the above mentioned resistances, the seekers could prolong its correction trend and risk another breakdown from $1,000.
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