Crypto Industry News:
Yesterday's hearing of SEC Chairman Gary Gensler
was led by the chairman of another committee devoted to the subject of Financial Services, and it is Congressman Patrick McHenry. Many observers believe that Gary Gensler is "grilled" by many politicians in connection with the recent controversial decisions of the US securities and exchange regulator regarding the cryptocurrency sector.
The SEC chairman stated, among other things, that Silicon Valley Bank's problems were caused by cryptocurrencies, not by irresponsible management. It also completely evasively answers the question of whether the second largest cryptocurrency in terms of capitalization, Ethereum, is a security. According to Gensler, "there is a lack of transparent qualifications to clearly recognize whether Ethereum is a security or another asset."
In response to a question from California Democrat Maxine Waters about whether the Commission has the authority to regulate cryptocurrency companies, Gensler said the SEC has the legal authority to regulate cryptocurrency companies and exchanges, but doing so effectively may require more staff and funding.
James French Hill, an Arkansas Republican, wanted to know if the head of the SEC was cooperating with congressional efforts to pass a regulatory package for stablecoins, but Gensler dodged the question by again being evasive.
Pete Sessions, a Republican from Texas, criticized Gensler, implying that it is not true that his "personal beliefs" are not representative of the SEC. The congressman said the Financial Services Commission was unhappy with the SEC's recent stance and performance.
It was also interesting that Gary Gensler, if you believe his words, considers artificial intelligence to be a greater threat to the stability of the entire system than the crypto sector.
Technical Market Outlook:
Not much has changed on the Ethereum market after the ETH/USD pair had broken above the level of $2,000. A new yearly high was made at the level of $2,129 and since then the market keeps consolidating around this level. The next target for bulls is seen at the level of $2,151. The strong and positive momentum on the H4 time frame chart support the short-term bullish outlook for Ethereum, however, the market conditions are extremely overbought on H4 and Daily time frame charts. The level of $1,858, $1,845 and $1,832 will now act as the support for bulls, so please pay attention to this level during the local pull-back.
Weekly Pivot Points:
WR3 - $2,208
WR2 - $2,153
WR1 - $2,124
Weekly Pivot - $2,098
WS1 - $2,069
WS2 - $2,043
WS3 - $1,988
Trading Outlook:
The Ethereum market has been seen making lower highs and lower low since the swing high was made in the middle of the August 2022 at the level of $2,029. This is the key level for bulls, so it needs to be broken in order to continue the up trend. The key technical support is seen at $1,368, so as long as the market trades above this level, the outlook remains bullish.
