Crypto Update: Ethereum Leads Rebound, Boosted by the SEC

The cryptocurrency segment experienced a sudden bullish surge in late trading today, following the words of a top-level SEC official that substantially eased regulatory fears, which were among the leading negative drivers this year. The director said that the institution won’t treat ETH as a security, and it doesn’t see value in regulating it. The positive announcement triggered a snapback rally across the board in the market, with 10+% in the off yesterday’s lows, correcting the recent steep losses.

The total capitalization of the coins recovered to around $300 billion, but the short-term trend is still negative, with most of the digital currencies only reaching Tuesday’s price levels. Ethereum bounced higher by 15%, back above the key $500 level, as it continues to be in a relatively technical position compared to Bitcoin.

BTC/USD, 4-Hour Chart Analysis

Bitcoin got back above the April low today, bouncing as high as $6700 together with the broader market after getting close to the $6000 level during yesterday’s late-day selloff. The coin remains oversold from a short-term perspective, but the bearish trend is clearly intact and although further correction is possible here, at least another test of the lows is likely, and traders shouldn’t enter new positions here. Initial support is found at $6500, with further zones near $6275, and between $5850 and $6000, while resistance is ahead at $6750 and $7000.

ETH/USDT, 4-Hour Chart Analysis

Today’s performances further underlined the divergence between the leaders and the laggards of the segment, and Ethereum’s strength is still the most promising sign for crypto bulls here. ETH remains on a long-term buy signal, being well clear of the April lows, although the short-term trend is still negative, and traders should still not enter new positions despite the bounce. The short-term MACD shows an oversold corrective pattern, with strong resistance ahead between $555 and $575, while support is found below $500 and $450, $400, and $380.

EOS Still the Bright Spot After Bounce

EOS/USDT, 4-Hour Chart Analysis

EOS is still in the strongest position form a technical standpoint among the majors, while Ripple and IOTA are also on long-term buy signals, holding up relatively well in the bearish environment. EOS bounced off the $9 support and rallied above $11 today, with the key $12 level now ahead as resistance. Although the coin is in a short-term downtrend,  and traders shouldn’t enter new positions here, it remains well above the April lows, in a clear long-term uptrend.

On the other hand, the weakest major are still trading below vital support levels, and the next period will be crucial as bulls and bears battle for long-term control. Stay tuned for our detailed long-term technical analysis coming out soon.

Featured image from Shutterstock

Disclaimer:  The analyst owns cryptocurrencies. He holds investment positions in the coins, but doesn’t engage in short-term or day-trading, nor does he hold short positions on any of the coins.

Trader and financial analyst, with 10 years of experience in the field. An expert in technical analysis and risk management, but also an avid practitioner of value investment and passive strategies, with a passion towards anything that is connected to the market.