Photo: Roboforex / TradingView
Ether continues its decline on Nov 22 after a short pause, and is now trading at $136.85, reports Dmitriy Gurkovskiy, Chief Analyst at RoboForex.
Technically, Ether follows its downtrend, with the major target at the projection channel support at $96.50. On H1, the descending channel is testing the local support, and the price correcting near 38.20% Fibo may also reach 50.00%, or $150.22. The next downward move will head to the current descending channel support to hit the low at $121.32. If this low gets broken out, Ether may hit the target support, too.
Fundamentally, the crypto is not doing well either. The US Securities and Exchange Commission (SEC) wants the currently held assets exchanged to cash.
After the Ether tokens hype and the crypto getting cheaper the investors will be likely to claim their funds invested into ICO’s. Many of them believe the latest downtrend was a manipulation. Overall, there are around $2.6M ethers on various startups accounts.
In mid November, the SEC acknowledged the tokens may be deemed securities in two companies, and enacted them to return the invested funds to the clients after thorough audits. This is not becoming a massive event for now, but is still very bad for Ethereum.
Due to the SEC regulations, around 64% of the funds invested into ICO’s were returned to the clients, and this could well influence the crypto’s price.
The situation may get better with the scalability issue being resolved. As mentioned before many times, the company first to speed up the transaction speed will get a superior advantage for many years moving forward. Ethereum has a good chance for it.