Ethereum (ETH/USD) declined early Tuesday to its intra-week low at 627.40 as investors digested a report from The Wall Street Journal that said US commodities and securities watchdogs are monitoring cryptocurrencies closely.
According to the Journal, regulators would think that the creation of the second-largest cryptocurrency by market capitalization back in 2014 was “probably an illegal securities sale.”
The newspaper remembered that the Ethereum foundation raised more than 31,000 bitcoin in July 2014 and as investors were speculating on a price rise after the launch, it would seem like a security or a stock.
Officials believe that companies and founders of cryptocurrencies have a strong influence on the cryptos value and fluctuation, like any other CEO or company regarding their stock. The Wall Street Journal expects a meeting between SEC and CFTC officials on May 7.
Ethereum ETH/USD got a hit but it remains positive
In this Framework, ETH/USD fell to its lowest level since April 26 at 627.40; however, the crypto managed to recover ground and closed Tuesday positive. ETH/USD is currently moving around 677.00.
If the unit extends its recovery, it will find next resistances at 710, Last week high; then it will test the 800 area before attempting to attack levels not seen since February at 880,00.
To the downside, if the pair breaks below the 200-day moving average At 647.00 successfully, the crypto will find supports at 630.00, 600.00 and 565.00.
Against the Euro, ETH/USD bounced back at its 200-day moving average level at 519.10 and closed the day with gains. ETH/EUR is now trading at 560.90, close to 7-week highs at 583.40.
ETH/GBP also bounced back from daily lows of 473.00, and it’s now trading above the 500.00 level at 504.00. The crypto logged its first positive day in three sessions.
Bitcoin opens the month on the downside
Bitcoin opened May with losses against the US Dollar as the cryptocurrency closed Tuesday at 9,036.80, $240 down from the opening price. BTC/USD is now trading around 9,035.30, logging its third negative day in a row.
The unit is still pressured by the 200-day moving level that is acting like a resistance; while bears can be preparing a new attack on the 8,710 support area. Indicators are pointing to the downside.
If the unit extends losses beyond 8,700 area, it will find new buying areas around 8,400 and 8,100 before attempting to break below the 8,000 level.
To the upside, bulls should put the unit above 9,600 before testing last week highs around 9,700. Then, the commodity will face the 200-day moving average at 9,970 and then the 10,000 mark.
Bitcoin Cash on range
Bitcoin cash, on the other hand, is consolidating prices around 1,338.60, right above the 200-day moving average. The BCH/USD posted gains on Tuesday as the unit managed to recover early losses from the 1,243.40 and it closed at 1,355.10.
The BCH got a rejection at the 1,600 level on April 24; then, it dropped to the 1,242 area, where the unit bounced back to the middle of the current range around 1,400.00.
BCH/USD is now trading 1.20% down on the day.