Early this month, the price of ethereum reached $349. This was the lowest level since November. The decline was attributed to several factors, including the end of the US tax season.
This week, however, ethereum has moved to a multi-weekly high of $705. It is now trading at $625 following comments made by the former Commodities Futures Trading Commission (CFTC) chair, Gary Gensler.
In an interview with the New York Times, he talked about cryptocurrencies and their potential risks. He discussed ripple and ethereum, arguing that they have been traded as noncompliant securities. He also argued that bitcoin could function better without government regulations.
Gary served as the CFTC chair during the Obama administration. He was also the head of policy for the Hillary Clinton campaign and is currently a senior fellow at the Massachusetts Institute of Technology (MIT).
Using the hourly chart shown below, the ETH/USD pair has gone through the first, second, third, and fourth phases of the Elliot Wave. It is now in the fifth phase which means that a corrective wave might come. If it does, traders should watch out for the $530 support level.
