ETH/USD Price Analysis: SEC Streamlining ICOs a Huge Boost for Ethereum

Even though there is a lot of legitimate concerns around the legality of ICOs, the SEC is about to streamline the space creating clear distinction between digital assets that are securities and utilities. Once these guidelines go live then Ethereum as a smart contracting platform and a go-to blockchain for coin issuance could see increasing demand drive prices above key resistance levels.

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That ICOs are a disruptive but innovative way of raising funds is true. It’s also true—according to previous SEC interpretations that most projects financed in this manner are securities. To this end, the SEC is going to provide a guidance in plain English on when an initial coin offering availed through any smart contracting platform is a classified as a security.

While speaking at the D.C. Fintech Week conference, William Hinman, the director of corporate finance at the SEC said the agency will work out a reference guidance for developers planning on issuing tokens. This way, the SEC and the director hopes will iron out kinks providing more clarity on whether investors would have to be under the oversight of the SEC once they buy these token securities.

For more clarity on whether a digital asset is a security or a utility, investors can get in touch with officials of their new wing, FinHub for “rapid feedback on questions regarding securities and securities offering”. Most importantly, the SEC shall classify any token a security if there is expectation of future gains or return on investment. Further guidance will also touch on secondary market transactions of tokens which the SEC classify as securities.

ETH/USD Price Analysis

Weekly Chart

ETH/USD Price Analysis

From a top-down approach it is clear that ETH/USD is stable and still moving inside a $50 range with clear supports at $200 and $250. Like before, we suggest taking a neutral stand until there are solid gains above $250-$300 resistance zone reversing losses of week ending Sep 9.

On the flip side, strong losses driving prices below Sep lows at $160 could mean another wave of sell pressure that will finally lead to a potential collapse of ETH/USD below $100. By the way, this is not far-fetched because what is basically priming the market at the moment is expectation and bullish sentiment.

Talks of implementation of x1000 scalability solution is positive but for now prices are yet to print above $300. Therefore, from an effort versus result point of view, bears are technically in charge.

Daily Chart

ETH/USD Price Analysis


In the meantime, ETH/USD prices are trading within a tight trade range with clear supports at October lows. Because of Sunday’s price revival, we expect prices to edge higher but before then, we must see clear gains above Oct 11 highs at $250 as aforementioned.

But since volumes were high on Nov 5, buyers stand a chance and as such aggressive traders should begin buying at spot with stops at $190 and first targets at $250 and later $300.

Sustained bull momentum above these two resistance levels mean strong support and ETH/USD prices could race back to $400 cementing its position as the second most valuable coin in the space.

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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