Crypto Industry News:
The US Securities and Exchange Commission (SEC) has launched another hunt. This time, the SEC is sharpening its harpoons on Kraken. The regulator has brought a number of allegations against Kraken, the main one of which is, of course, operating as an unregistered exchange. The SEC also alleges that the exchange commingles its own assets with those of customers. What is the fate of Kraken and is there another long-term court dispute similar to the one between the SEC and Ripple Labs?
Although the congressmen themselves want to temper the SEC's actions, the American regulator does not intend to refrain from suing further cryptocurrency projects. One of the subsequent SEC lawsuits was directed against the Kraken cryptocurrency exchange. The SEC's main accusations against the company include mixing stock exchange funds with customer assets and trading in cryptocurrencies (Cardano, Algorand), which were considered unregistered securities by the SEC.
Interestingly, these are not the first actions of the American regulator against the stock exchange founded by Jesse Powell. Initially, Gary Gensler's team fined Kraken $30 million for the staking option available on the platform. The current accusations mainly concern the exchange operating on the American market without proper registration. The main argument is the fact that Powell's company operates as a stock exchange, broker, clearing agency and dealer.
A sharp comment from the CEO of the Kraken exchange, Jesse Powell, appeared on social media very quickly. In the entry on the X website, Powell condemns the actions of the SEC and points out a fact that is noticed by many people in the cryptocurrency industry. The American regulator suppresses innovation and inhibits the development of new technologies in the United States.
Moreover, Powell also referred to the situation from February this year, when the exchange paid a USD 30 million fine. Today, Powell described that event as a simple example of extortion by the regulator. The exchange's CEO said harshly that paying $30 million would give the companies about 10 months before the SEC started extorting money again. Gary Gensler and his team are increasingly disgusting the American market with cryptocurrency companies.
Technical Market Outlook:
The ETH/USD pair has rebounded from a recent low at $1,902, successfully surpassing the 50-day moving average at $1,994 and is currently ascending towards its next target. Intraday technical resistance is identified at $2,080, while intraday technical support is established at $1,931. With robust and positive momentum, the short-term outlook for ETH remains bullish as the ongoing local corrective cycle persists. The crucial short-term technical support for ETH is situated at $1,911, and only a clear and sustained breakout below this level would prompt a shift in the short-term outlook to bearish.
Weekly Pivot Points:
WR3 - $2,298
WR2 - $2,208
WR1 - $2,086
Weekly Pivot - $1,996
WS1 - $1,873
WS2 - $1,783
WS3 - $1,661
Trading Outlook:
The Ethereum market has consistently formed lower highs and lower lows since reaching the swing high in mid-August 2022 at $2,029. For the bulls to sustain the upward trend, breaking through this pivotal level is imperative. The crucial technical support at $1,368 holds significance, and as long as the market maintains trades above this level, the overall outlook remains bullish.
