In 2018, the current Securities and Exchange Commission (SEC) Chair, Gary Gensler, made a statement which has recently resurfaced stating that the two most prominent cryptocurrencies, Ethereum (ETH) and Bitcoin (BTC) are not securities. However, Gensler’s subsequent actions at the SEC paint a different picture, with the regulatory body launching a wave of enforcement initiatives within the cryptosphere in recent months.
Last week, Gensler listed 68 cryptos as securities, including Cardano (ADA), Solana (SOL), and Polygon (MATIC) in the most recent lawsuits. Additionally, he declared that all cryptocurrencies apart from Bitcoin are securities, contradicting his 2018 video statement.
As a result of the intensified crackdown on the crypto market by the US SEC, Ethereum started the week consolidating losses after a gruesome week. However, according to analyst Aayush Jindal, Ether only needs to reclaim support at $1,800 to validate a bigger recovery move to $2,000. Ethereum must first deal with resistance at $1,760 before closing the gap to $1,800.
On a positive note, the Moving Average Convergence Divergence (MACD) indicator shows a strong buy signal, which could encourage traders to eye new long positions in Ethereum price as long as the blue MACD line holds above the red signal line.
Insights from the on-chain analytics platform Santiment suggest that the crypto market may start to rise now that the dust has settled following the SEC going after Binance and Coinbase. A rebound is expected to continue until the next development with the lawsuits.
Most altcoins experienced extreme capitulation last week, leaving many traders and investors with losses. The sharp price drop will likely trigger increased accumulation among whales, and if this accumulation trend continues, there might be potential for a strong rebound, as Santiment suggests.
However, continuously adjusting their crypto portfolios will be important for investors as they face legal battles with Coinbase, Binance, and the foundations of selected cryptos like ADA, SOL, and MATIC. Observing the outcomes of these lawsuits and keeping an eye on market trends will be essential in navigating the ever-evolving landscape of the cryptocurrency world.
Source: Coingape
