Ethereum Price Analysis: ETH Hovers Around Crucial Level Over The Last Three Days

Daily Ethereum ETH Price Forecast

Last Updated July 23rd 2021
3 Min Read
  • Ethereum price flipped 20-day SMA from support to resistance this Tuesday.
  • The MACD has shifted from bullish to bearish.
  • On June 4, the Ethereum price lost momentum at the 50-day SMA and crashed from $2,860 to $2,500 till June 8. During this drop, ETH managed to flip the 20-day SMA from support to resistance. Following this crash, ETH has been trending horizontally around $2,500 around the 20-day SMA.

    Ethereum Price Faces Resistance At The 20-day SMA

    As things stand, the relative strength index is hovering along the neutral zone. This shows us that ETH can drop a lot more before getting oversold. The MACD has already flipped from positive to negative, so a further drop is expected.

    Image: ETH/USD daily

    ETH/USD daily chart 061121

    Looking at IntoTheBlock’s New Addresses metric over the past week. This number reached a peak of 330,000 on June 5 and June 6, before it crashed to 150,000 and improving to 175,000.

    ETH/USD Into the block chart 061121

    Ethereum On-Chain Analysis – CryptoQuant

    ETH/USD CryptoQuant chart 061121

    “395,903 $ETH flowed out from @coinbase.” This is pretty big as it could potentially hint at another institution entering Ethereum.

    CFTC Commissioner Thinks DeFi Derivatives “Are a Bad Idea”

    Dan Berkovitz, Commissioner of the Commodity Futures Trading Commission (CFTC), shared his thoughts on DeFi. At the recent Asset Management Derivatives Forum 2021, Berkovitz expressed his concerns with the decentralized finance sector. Decentralized markets allow users to exchange crypto, NFTs, financial derivatives, and other assets without relying on intermediaries.

    Berkovitz highlighted that DeFi-based derivatives might violate regulations set by the Commodity Exchange Act (CEA). He said: 

    DeFi markets, platforms, or websites are not registered as DCMs or SEFs [swap execution facilities]. The CEA does not contain any exception from registration for digital currencies, blockchains, or smart contracts.

    The Commissioner referred to DeFi as a “shadow financial market” that is trying to compete with regulated markets, adding: 

    For all these reasons, we should not permit DeFi to become an unregulated shadow financial market in direct competition with regulated markets.

    Berkovitz expressed concerns about unlicensed derivatives trading using DeFi protocols that he believed may be considered illegal under the Commodity Exchange Act (CEA). Such unregistered derivatives include products like decentralized options and futures, synthetics, indexes, and others. Berkovitz said that derivative instruments “are a bad idea” and that he “does not see how they are legal under the CEA.” He added that the CEA requires futures contracts to be licensed and regulated by the CFTC. 

    Berkovitz seemed particularly interested in consumer protection when it comes DeFi. He defended the role intermediaries play in the derivatives market and claimed that removing them by introducing DeFi products would bring a lot of harm. He commented that in DeFi, “there is no intermediary to monitor markets for fraud and manipulation, prevent money laundering, safeguard deposited funds, ensure counterparty performance, or make customers whole when processes fail.”

    Berkovitz’s speech indicates the CFTC may look to prohibit US citizens from trading DeFi-based products such as decentralized options and futures. For a long time, the CFTC has used its power against centralized US exchanges like Coinbase and others. The agency hasn’t hesitated to take strict legal action against platforms that violate its rules in the past. 

    Ethereum Price Is Expected To Reach These Levels

    If the Ethereum price will break below the $2,400 support barrier and reach the $2,000 psychological level.