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The crypto market was recovering on Wednesday with the global crypto market capitalization rising 2% on the day to $1.12 trillion. Bitcoin (BTC) and Ethereum (ETH) led the charge two days after an intense sell-off, despite a second lawsuit by the United States Securities and Exchange Commission (SEC) against Coinbase. On Monday, the regulator also charged Coinbase’s rival Binance and referred to multiple cryptos as unregistered securities.
The second largest crypto by market value rallied to $1,900, up 6% from Tuesday’s opening. On Monday, Ethereum price fell near $1,770 as investors moved their funds from crypto assets following the SEC’s lawsuit against Binance.
The pioneer cryptocurrency BTC reclaimed the $27,000 level, rising as much as 7% on Tuesday to set a swing high at $27,368. It was still leading the gains among the top-cap coins on Wednesday as it trades at $26, 849, up 4.18% over the last 24 hours, according to data from CoinMarketCap.
Top 10 Cryptos
At the same time, XRP and Dogecoin (DOGE) were up 3.99% and 4.62% respectively in the last 24 hours. Binance’s BNB and SOL, the token of the smart contracts platform Solana, were back in the positive territory, while Cardano’s ADA and Plygon’s MATIC were down 1.78% and 2.93% respectively, over the same time frame.
Working to “get them into compliance”- SEC On Coinbase Lawsuit
On Tuesday, the SEC brought charges against Coinbase, the largest crypto exchange in the US, accusing the company of acting as an unregistered broker and digital asset exchange. The regulator filed the lawsuit in the New York federal court and demanded that the company be “permanently restrained and enjoined” from continuing to do so.
Speaking during an interview with CNBC, SEC Chair Gary Genser said:
“If there’s a real value in these crypto tokens then compliance will build trust and the business model might change. What we’re doing at the SEC is pro-innovation because the capital markets really don’t work.”
The SEC official also said that there was a lot of work US regulators were doing for the digital asset industry adding “we stand ready to work to get them into compliance.”
In the complaint, the SEC mentioned several coins listed on Coinbase it considers to be“crypto asset securities” including the popular Layer 1 token Solana (SOL). Solana’s price fell 3% following the news and now trades in the red at $20.
Ethereum At Risk Of Further Losses Despite Yesterday’s Rally
The SEC kept away from including Ethereum in its lawsuits against Binance and Coinbase. Although this was a reassuring sign for investors that the US regulator still considers the token of the smart contracts as a commodity, it did little to abate the pending risk of a further decline.
At the time of writing, Ethereum is exchanging hands at $1,856 and is fighting immediate resistance from the 50-day Simple Moving Average (SMA) sitting at $1,858. Yesterday’s rally was rejected by the resistance line of a descending triangle.
Note that a daily candlestick close below the triangle’s support line at $1,793, around which the 100-day SMA lies would spell doom for Ether’s price with the first line of defense emerging from the $1,700 psychological level.
A drop lower could see ETH drop to revisit the 200-day SMA at $1,610 before reaching the technical target of the governing chart pattern around $1,500. This would represent an 18.86% drop from the current price.
In highly bearish cases where the support at $1,500 is breached, the token could drop toward the $1,000 support wall. Market participants could expect Ethereum to take a breather here before making another attempt at recovery.
ETH/USD Daily Chart
Ethereum’s negative outlook is supported by the downward-facing 50-SMA and the Moving Average Convergence Divergence (MACD) indicator. This suggested that the bears were still in control of the price. Note that Ether’s downward trajectory will gain momentum once the MACD crosses the zero line into the negative region.
On the upside, the bulls may try to push ETH past the 50-day SMA and above the triangle’s descending trendline with their eyes set on $2,000. If this happens, it would just be a matter of time before they push Ethereum price toward the April 14 swing high of around $2,140.
Ecoterra – A promising alternative to ETH
Bears seeking to place their short bets on Ethereum should wait for a decisive close below the 100-day SMA around $1,790, while bulls would have to wait for a clear move above the 50-day SMA at $1,858.
While waiting for this to happen, investors could turn to new cryptocurrency in presale with a low risk-reward ratio and a potential to make 10x returns in 2023. One such crypto is ECOTERRA, the native token of the Ecoterra platform, a novel green crypto project that aims to revolutionize recycling and incentivize individuals to contribute to environmental protection.
As people become more aware of the impacts of global warming initiated by climate change, businesses and individuals are taking steps to protect the environment.
Ecoterra is doing its part by educating the public about the importance of recycling and providing financial incentives through its Recycle-to-Earn (R2E) system.
The project has achieved a significant milestone in its presale, raising over $4.81 million. At press time, $ECOTERRA is priced at $0.00925 per token.
A HUGE thank you to everyone who has participated in our presale so far 🙌
🔥 $4,8 MILLION RAISED 🔥
Stay tuned for more updates on our exciting journey!
Join our #Presale now ⬇️ https://t.co/1fYkPOtnOe pic.twitter.com/rEoRdEp9uY
— ecoterra (@ecoterraio) June 6, 2023
These tokens can be staked, spent, or donated to ecological activities like beach cleanups, tree planting, or supporting green energy projects globally.
Projects like Ecoterra are expected to play an increasingly significant role in global efforts to combat climate change in the future.
Visit $ECOTERRA here for more information on how to participate in the ongoing presale.
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