Ethereum Technical Analysis: ETH Repeatedly Fails To Break Above $1,400
Daily Ethereum ETH Price Analysis
- Ethereum price is bouncing up from the 20-day SMA.
- In the 4-hour ETH chart, the MACD has reversed from bearish to bullish.
Over the last two weeks, the Ethereum price has been sandwiched between the $1,400 psychological level and the 20-day SMA. ETh has repeatedly tried to breach $1,400 but has failed to do so. So, what’s going on behind the scenes?
Ethereum Stuck Between Key Levels
So, let’s see what’s going on here. Since December 23, the Ethereum price has been on a steady upswing, going from $580 to $1385, gaining more than double its overall valuation. The relative strength index has still not entered the overbought zone, which will give more room for growth.
Image: ETH/USD daily
On the downside, ETH has healthy support at $1,335, wherein 303,000 addresses had purchased 7.86 million ETH tokens. A further break will take the Ethereum price down to the 20-day SMA ($1,300) and the $1,150 support line.
The 4-hour chart, however, has some positive signs for us. Firstly, the 20-bar and 50-bar SMAs in this timeframe have flipped from resistance to support. Secondly, the MACD shows that the market momentum has reversed from bearish to bullish.
Image: ETH/USD 4-hour
Virgil Griffith’s Motion Dismissed By Court
Virgil Griffith, a former Ethereum Foundation developer, has been accused of violating the International Emergency Economic Powers Act in North Korea. Prosecutors believe that his actions could have allowed North Korea to bypass sanctions and launder money.
According to the prosecutors, Griffith aided North Korea by giving a speech in Pyongyang about cryptocurrencies to get around US economic sanctions. A US federal judge has now rejected Griffith's motion where he claimed that the First Amendment freedom of speech protected his speech.
Griffith maintains that he provided very basic information about blockchain to a limited number of North Koreans and that the information provided was available on the internet. However, the court revealed an incriminating message sent by Griffith to one of his colleagues in 2018. The message revealed his intention to set up an Ethereum node and help North Korea circumvent prevailing sanctions.
US district judge, Kevin Castel, denied Griffith’s motion, finding that there were adequate charges against him.
Examining the indictment in light of the parties’ arguments, the court concludes that it provides adequate notice of the charges against Griffith sufficient to enable him to prepare for trial and, if it becomes necessary, plead double jeopardy as a defense. Further, upon review of the law governing the offense conduct, the indictment states a federal crime and violates no constitutional prohibition.
Griffith was one of eight people who attended the Pyongyang Blockchain and Cryptocurrency conference in North Korea. The dev was arrested upon returning to the US in late 2019 but was granted bail on the 30th of December. He received support from the crypto community, with people such as John McAfee condemning his arrest.
Ethereum’s Legitimacy Questioned By Ripple During SEC Response
Ripple has recently responded to the US Securities and Exchange Commission’s (SEC) lawsuit with an inquiry into Ethereum. The SEC had alleged Ripple of selling unregistered securities in the form of XRP tokens.
The response from Ripple reads:
The functionality and liquidity of XRP are wholly incompatible with securities regulation. To require XRP’s registration as a security is to impair its main utility.
The filing refuted all of the SEC’s claims in a detailed report, concluding that XRP did not represent a security or investment contract. Ripple argued that the SEC failed to properly acknowledge the utility of XRP, ignoring the token’s open-source protocol and price correlation with other top crypto assets.
Apart from the filing, Ripple also submitted a Freedom of Information Act (FOIA), requesting information pertaining to Ether's nature and whether it constituted security under SEC law. According to a Cointelegraph report, a Ripple representative said:
The SEC has clearly picked two winners and ignored a growing and robust industry that is much larger than Bitcoin and Ether. In addition to discovery we will seek directly in the lawsuit, we filed a Freedom of Information Act (FOIA) request for more information about how the SEC determined the status of Ether as a non-security.
Ethereum Price Is Expected To Reach These Levels
As things stand, the only thing that the bulls need to do is to push the Ethereum price above the $1,400 psychological level. If that happens, ETH could re-touch its all-time high level again.