Note: “This analysis is an adaptation from the work of Mati Greenspan, Senior Market Analyst at eToro
- CFTC seeks public comments on Ethereum and its network
- Bitcoin still hovers around its support zone of USD 3000 to USD 3500
- A high number of shorts noticed across markets indicating we could see a bounce
CFTC trying to understand Ethereum
Ethereum has been a bellwether coin for anyone who has looked at cryptos beyond Bitcoin. In some cases, Ethereum has been a better coin and has changed the way the world looks at cryptocurrencies. Even with scalability issues creeping in and the coin facing tough competition, a lot of crypto enthusiast believe the coin is just a step away from bouncing back to its winning ways. During the bull market of 2017, the next big thing for Wall Street was set to be Ethereum futures and it seems it’s coming back on the menu of regulators.
As the world goes further towards the tokenization of financial assets, the service of locking in future prices for Bitcoin and Ethereum could become essential for entrepreneurs. So, the CFTC in the United States is now asking the community for help to understand the industry’s needs so that they may accommodate them. In a Request for Information (RFI) that will be published in the Federal Register, the CFTC has asked for public feedback on a range of questions related to the underlying technology, opportunities, risks, mechanics, use cases, and markets, related to Ether and the Ethereum Network. The CFTC has set a deadline for all comments to be received within 60 days of publication in the Federal Register. The RFI also seeks to understand similarities and distinctions between Ether and Bitcoin, as well as Ether-specific opportunities, challenges, and risks.
Have the markets found its bottom?
With all the progress in the crypto industry lately, it’s extremely difficult to understand why prices have fallen over the last month. There has been a massive slide down in bitcoin that’s been happening since November 14th. From its all-time high to the new low from last Friday bitcoin has fallen a total of 84%, which is more or less in line with the level of retracements that the asset has seen in previous cycles.
As it has been previously discussed when bitcoin broke below the psychological level of $5,000, the current area of support is between $3,000 and $3,500. So it is very much in this area right now. A breach to the downside could certainly cause further selling and a lower low. However, a strong push upward from these levels could actually serve to shift sentiment and change the trend. With the high number of short sellers across various exchanges right now, even a small push up could potentially affect a short squeeze in the market. Even with a small squeeze the prices may land up over USD 5000 again triggering a bull run again
Disclaimer The views, opinions, positions or strategies expressed by the authors and those providing comments are theirs alone, and do not necessarily reflect the views, opinions, positions or strategies of CoinGape. Do your market research before investing in cryptocurrencies. The author or publication does not hold any responsibility for your personal financial loss.