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Ethereum finds itself in a very dangerous position, with its fate possibly in the hands of the US SEC: is it a security, or is it a commodity? Is it decentralized enough?
While the industry judges itself, It is now or never for the ETHUSD rally, or the second-largest cryptocurrency by market cap risks a catastrophic breakdown.
Will The Carnage In Crypto Cause Ethereum To Collapse?
Ethereum and most other altcoins have taken a brutal beating recently, brought on by enforcement actions taken by the US SEC against top crypto exchanges. While ether hasn’t caught on to the list of securities labeled cryptocurrency, the market suspects that it won’t find itself on the SEC’s list either.
Due to recent changes to proof-of-stake, Ethereum is not as “safe” from regulatory scrutiny as bitcoin. However, according to the recent Hinman docs, it is arguably decentralized enough, which may be an important measure of what does or does not do security.
The drop from here looks treacherous | ETHUSD on TradingView.com
Why ETHUSD Is At A Critical Inflection Point
A technical price bounce in ETHUSD is essential at this point, otherwise it could find itself at risk of a total collapse. That is, if the long term rising wedge pattern breaks through this level. Conversely, if the level holds, the top trend line of the wedge is located near $10,000 per coin.
From a risk versus reward perspective, the stakes are high – at some point the stratosphere will hit new all-time highs, or unprecedented new lows and the worst bear market in Ethereum history. And it all comes down to this pattern.
With so little liquidity in crypto, a murky regulatory environment, and economic turmoil everywhere, a negative decision in the loosely related XRP case could finally push Ether off the cliff it’s hanging from. Meanwhile, increased risk appetite and a halt to interest rate hikes, combined with a positive decision in the XRP case or elsewhere in the SEC drama, could save Ethereum from certain doom.
#ethereum Team Blue 🔵 or Team Red 🔴
Reply why you chose your color ⬇️ pic.twitter.com/UTygTqQqWE
— Tony “The Bull” (@tonythebullBTC) June 14, 2023
