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The main crypto-currencies are all turning green today, while Ethereum takes the recent development of A possible regulatory crackdown in stride. After going from the $ 1,000 level to as low as $ 300 this year, Ethereum has been on the comeback track.
This momentum could have been marginalized by reports that US regulators are considering classifying the No. 2 digital currency by capitalistic as a security, similar to the way they see the chips that enter the market by the US. initial offer of coins. Meanwhile, last week, US Securities and Exchange Commission Chairman Jay Clayton pinpointed the idea that bitcoin could be a security.
But Ethereum came out largely unscathed from these reports, and its return to nearly $ 700 is a good technical indicator, according to Robert Sluymer of Fundstrat Global Advisors on CNBC. Any sale in Ethereum was probably a function of the overbought of digital currency, similar to bitcoin over the past week. With bitcoin, he reports a "huge support between $ 8,200 and $ 8,400." He adds that "the downward trend that has been in place since January is reversing."
"The question is:" Do we see a bigger bubble? Or is it a background phase? And we think it's a bottom-up phase that's settling in and you want to buy the oversold shrink in the near term, "Sluymer said.
Sluymer reflected on the difficult situation of Bitcoin which included a 70% drop in price from the peak of 2017, which also put pressure on other cryptocurrences. All this is in the rearview mirror now that things look from a technical point of view.
"It was a combination of regulatory concerns, taxes, a price break – all of that happened in the perfect storm," he said, highlighting the "low of February" which was tested again in March. . "It seems a bit to me," said Sluymer.
Not the Nasdaq
Meanwhile, Sluymer dispelled the myth that any bubble that had formed in the price of bitcoin and the subsequent downtrend of the first quarter did not relate to the dot-com bubble at the turning point. of the century. To begin, bitcoin appeared less than ten years ago and can not really be compared to an index like the Nasdaq that has been trading for more than 40 years.
Second, the amount of institutional capital that has flowed into the Nasdaq can not be compared to the amount that arrives in bitcoin either. Institutional investors remain largely untouched by cryptocurrencies until a formal regulatory framework takes shape, a move that could even lead the Nasdaq to allow cryptocurrency trading as an exchange.
Image from Shutterstock to photo
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