✴️ Ethereum A Security? This Will Happen... Down We Go!

13 kwi

It is very interesting because it always creates a dichotomy, those who belief and those who don't; what happens if Ethereum is classified as a security?

What will happen to all those tokens, all those projects, all the innovation, all the sell orders, all the trading, all the fun?

How will the market be affected?

The truth is that Ethereum does not need to be classified as a security in the USA for it to enter a strong corrective phase, it can just happen as it happens all the time with financial markets, prices tend to fluctuate.

➖ Ethereum (ETHUSDT) has been dropping for five weeks with EMA10 being challenged as support.

➖ EMA10 weekly was first challenged 18-Mar. on a wick, then again 1-Apr. with another wick, and finally this week, 8-Apr., this support is again being challenged.

➖ ETHUSDT is sitting right above this line (marked green on the chart) and this can be interpreted in multiple ways:

1) EMA10 is working as support and can serve as the level from which ETHUSDT moves higher; a bullish scenario (not my current view).

2) Support challenge makes it weaker and is about to break. A break would send prices much lower. A break of support can be supported by looking at related markets and how far down and strong the current move hit. It was really strong, so strong that it would take more than a day for the big Altcoins to recover. In fact, many Altcoins of the smaller groups will recover right away but the initial reaction is strong and negative all across, just as predicted. While some go down, others will grow.

Seeing that the week already started green and then went red, we are likely to see lower as the session ends.

There can be a very strong correction for Ethereum starting soon, or already developing since we are down for the fifth week. And no, Ethereum does not need to hit a new All-Time High just because Bitcoin hit a new All-Time High, but why?

👉 Just as back in 2022 Ethereum bottomed June rather than November, this time around there might be no new peaks.

Let me try and clarify that: The fact that ETHUSDT managed to start growing faster than Bitcoin (no new lows after June 2022) tells us that it can also stop growing faster than Bitcoin.

In one case it can make the exception of hitting no new lows; in another case it can make the exception of hitting no new highs.

And with no new highs, down we go!

Namaste.