• Ethereum price stabilizes and recovers by over 35%
• SEC and CFTC meeting brings stability to the crypto market
Ethereum is trading above $800 today after crashing below $700 mark on Monday 5th January 2018. The digital currency is second to Bitcoin by market capitalization. The price is up by 35% to trade at $825 embarking on the first recovery since the beginning of the week.
The recovery comes a day after the Security Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) met on Tuesday the 6th morning to discuss their oversight role concerning virtual currencies, Initial Coin Offerings (ICOs) and blockchain in general. The meeting was highly anticipated to give directions for regulations in the cryptocurrency market. The Chairman of the CFTC, J. Christopher Giancarlo said that he was optimistic towards the blockchain and the distributor ledger technology (DLT). The chairman added that digital currencies would “likely require more attentive regulatory oversight” in regards to “fraud and manipulation.”
Mr. Giancarlo continued with his presentation saying, “As we saw with the development of the Internet, we cannot put the technology genie back in the bottle. Virtual currencies mark a paradigm shift in how we think about payments, traditional financial processes, and engaging in economic activity. Ignoring these developments will not make them go away, nor is it a responsible regulatory response.”
The chairman of SEC, Jay Clayton, on the other hand, was not very excited about the digital assets. Although, he went ahead to acknowledge the role of the blockchain technology in the financial industry. He also reckoned that the people who invest their money in the technology’s related assets that fall within the mandate of the SEC deserve to be protected by the federal securities laws.
The cryptocurrency market is gaining stability just hours after the contents of the meeting were posted online for the public. Ethereum price is now trading at $825, and the immediate support is at $700. On the upside, the resistance level is at $950. The news on the SEC and the CFTC meeting continues to reach the market, the price of Ethereum could be headed to the $900 mark.