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ETH/USD crypto signal - Will price post the much needed correction - 07 May 2018

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Price of Ethereum was seen posting a strong rally as the cryptocurrency was seen rising to highs of 838.00 over the weekend before easing back. The strong rally which saw minimal pull back is likely to see a correction in the near term.

Price action was down about 8% on the day today. The declines came amid rumors about the U.S. regulators scheduled discussion on that most appropriate way to classify cryptocurrencies. The discussions come amid a report that officials from the CFTC and the Securities Exchange Commission (SEC) meeting to debate on whether to classify cryptocurrencies as a regular security.

The discussions are likely to lead to a strong debate. Most recently, the famous investor Warren Buffet was seen talking about cryptocurrencies at his annual Berkshire Hathaway investor confidence over the weekend. Buffet said that cryptocurrencies do not have any intrinsic value and thus brushed aside this asset class as a purely hype and speculation.

The CFTC and SEC meeting is due to take place later in the day today. The topic is not just about cryptocurrencies on the whole but also takes a closer look at the cryptocurrencies themselves. Among the various tokens, Ethereum and Ripple are speculated to stand out due to their characteristics similar to securities.

From a technical perspective, a correction in Ethereum prices to the support level at 562.00 makes for a good buying opportunity for the long term.

In the near term, speculators can take short positions at 760.00 targeting 562.00 with stops at the recent highs of 838.00. This bodes well for the technical signals which currently point to a hidden bearish divergence.

Alternately, traders can wait on the sidelines for Ethereum prices to dip to the 562.00 level in order to shore up on long positions.

crypto trading signal ethusd 07 may 2018

Disclaimer: The article is written for informative purposes only and it is not financial advice. The author does not have any position in the currency pairs mentioned, and no plans to initiate a position. He wrote the article himself and expressed his own opinions. Readers should not treat any opinion expressed by the author as a specific inducement to make a particular trade or follow a particular strategy, but only as an expression of his opinion. All risks and coasts associated with online trading are your responsibility.