Crypto Industry News:
The US Securities and Exchange Commission (SEC), led by CEO Gary Gensler, reportedly investigates token makers and NFT markets for violations of securities laws.
Anonymous sources in the report said the SEC is investigating whether "certain NFT tokens [...] are used to raise money like traditional securities."
Over the past few months, lawyers at the SEC's executive unit have reportedly sent subpoenas requesting information on specific NFT deals and other token offers.
While crypto loan products have been the subject of great regulatory scrutiny over the past year, this report is an important step towards investigating the NFT sector. The study shows that the SEC has a particular interest in how fractional NFTs are used.
The red flags have been clear for quite some time when Hester Peirce, also known as Crypto Mom, stated in March 2021 that selling the fractional NFT could be breaking the law.
This investigation is the latest symptom of a wave of restrictions aimed at stronger management of the cryptocurrency market. The SEC recently ordered BlockFi, a New Jersey-based cryptocurrency lending company, to pay a record $100 million fine for not designating "high yield" loan products as securities.
While Bitcoin and Ethereum were able to evade scrutiny due to the fact that they are not considered securities by the SEC - at least not yet - other digital assets do not benefit from the same exemption.
Technical Market Outlook
The ETH/USD pair rally has been capped at the short-term trend line resistance around the level of $2,999 and the market reversed lower towards the level of $2,574. The target for bulls was seen at the level of $3,024 and in a case of a breakout higher, the rally might accelerate towards the swing high seen at the level of $3,287, nevertheless, the bearish pressure had pushed the price below the technical support seen at $2,760 (now resistance). The market conditions are coming off the overbought levels, so the next target for bears is seen at $2,574 and $2,474.
Weekly Pivot Points:
WR3 - $3,411
WR2 - $3,141
WR1 - $2,874
Weekly Pivot - $2,577
WS1 - $2,325
WS2 - $2,017
WS3 - $1,770
Trading Outlook:
The market is bouncing after over the 50% retracement made since the ATH at the level of $4,868 was made. The level of $3,436 is the next key technical resistance for bulls. On the other hand, the next long-term technical support is located at $1,721 (61% Fibonacci retracement of the last big impulsive wave up) is still the key long-term.
