Even though transacting over blockchain platforms is legal, fresh efforts by Chinese regulators and agencies to further bog down privacy is of great concern. Proposals by the Cyberspace Administration of China may be conflicting with laws. Even if they are still consulting with the public, its implementation might adversely affect price. On to the charts our last Ethereum trade plan holds since price is relative stable.
Latest Ethereum News
It’s quite absurd that China while the secondly largest economy and perhaps the largest crypto user base—before their Sep 2017 crack down and ICOs is taking such tough steps as they bend towards muffling crypto and similar activities. In a new wave of “direct” attacks on anonymity and privacy of blockchain, a new legislation would mandate market participants to register using their real names and national identity documents.
As various news sources inside China report, the Cyberspace Administration of China is currently in a public consultation and it will be catastrophic for users who prefer privacy once it goes live. That’s assuming the public endorses CAC’s proposals. If that would be the case then it would be mandatory, a legal provision for all blockchain providers to submit the real name and identities of users desirous to transact over the blockchain.
Undoubtedly, this is sending jitters through the space and as complex as it is, users are free to hold digital assets and transact over blockchain platforms as Monero and Ethereum. However, the implementations of such laws shall inevitably cloud previous stands and even inject uncertainty in an already fragile ecosystem.
Ethereum Price Analysis
Weekly Chart
If anything price action of the last month or so has been slack. ETH price action is still trending inside week ending Sep 9 high low. That’s aside from the tight trading range between psychological $200 and $300. As a result we have a long upper wick signaling bears in lower time frames.
Now, though ETH is up four percent in the last week, prices are yet to slide lower and past the main support line at $160 or week ending Sep 9 lows meaning our previous Ethereum trade plan is live. But, considering how price is set up, odds are we might see further losses. Notice that bulls didn’t build enough momentum to clear $300 or week ending Sep 9 losses.
Note that for bulls to be squarely in charge then we need to see strong gains above $250 and $300. Thereafter, first targets would be at $400 with stops at the lows of the bull break out candlestick. On the reverse side, losses below $200 and $170 builds the impetus for further losses towards $75.
Daily Chart
Price action of the last few days best concludes the lack of activity as price accumulate in lower time frames. From the chart, it’s clear that ETH is in range mode with minor resistance at $220.
With waning momentum and trade volumes, traders must first see strong movements before they commit their hard earned capital. Therefore, as long as this range mode continue, we recommend staying neutral until a break out in either direction prints.
Disclaimer: Views and opinions expressed are those of the author and aren’t investment advice. Trading of any form involves risk and so do your due diligence before making a trading decision.
