- Ethereum products record inflows for first time in nearly two months, according to CoinShares.
- SEC Chair Glenser says several crypto assets are securities as he waives off ETH classification question.
- Ethereum could sustain horizontal movement in the coming weeks.
Ethereum is hinting at a resumption of a sideways movement on Tuesday after seeing inflows for the first time in seven weeks. The Securities & Exchange Commission’s (SEC) Chair Gary Gensler has also called most crypto assets securities following a Wells Notice targeted at ETH-related firms.
Daily digest market movers: ETH inflows, whale transfers, SEC Chair
Ethereum’s price uncertainty among investors is increasing despite recent updates surrounding the largest altcoin. Here are the top market movers:
- Ethereum institutional investors appear to be turning bullish for the first time in nearly two months. After seeing seven weeks of consistent outflows, ETH “broke its 7-week spell of outflows,” raking in $30 million in inflows, according to data from CoinShares.
- Following ETH’s recent bull-bear stalemate, FTX/Alameda Research addresses have transferred approximately 2,000 ETH worth $6.17 million to Coinbase, according to PeckShieldAlert. FTX/Alameda Research addresses have previously been marked for occasionally transferring ETH to exchanges moments before a market downturn.
- In the past 24 hours, hackers related to the Poloniex exchange and KronosResearch hack have transferred 1,100 ETH and 1,000 ETH, respectively, to US-sanctioned mixing protocol Tornado Cash, PeckShieldAlert data shows.
Also read: Ethereum could see a brief rally despite Michael Saylor’s jab at ETH ETFs
- In an interview on CNBC Squawk Box on Tuesday, SEC Chair Gensler said that most crypto assets are securities “under the law of the land as interpreted by the US Supreme Court.” This response comes after he was asked about his agency’s recent action to file a Wells Notice against Robinhood Crypto on Monday.
He further stated investors are not getting the “required disclosures” about these crypto assets. Gensler seemed to avoid the question when pressed if he considers Ethereum a security or commodity and, ultimately, the possibility of a spot ETH ETF.
“All I would say is, to me, the fundamental question is how do we ensure that the American investor is protected?” said Gensler. “Right now, they’re not getting the required or needed disclosures, and the intermediaries in the center of this rather centralized market generally are conflicted and doing things we would never allow the New York Stock Exchange to do.”
Fortune earlier reported that the SEC may be aiming to classify Ethereum as a security after subpoenaing several firms for facilitating the buying and selling of Ethereum. Ethereum infrastructure provider Consensys also announced it received a Wells notice from the regulator.
In a court filing, Consensys revealed the SEC had secretly considered ETH a security through investigative actions labeled at several firms.
ETH technical analysis: ETH to begin sideways movement again
Ethereum is looking to resume a sideways movement again on Tuesday after failing to stay above the $3,161 resistance.
ETH/USDT 4-hour chart
ETH’s current price action suggests the popular altcoin would likely follow a horizontal pattern — but more tilted towards shorts — amid uncertainty among traders.
This is confirmed by ETH’s liquidations data, which — having slowed down — still sees long liquidations forming the bulk of the digital asset’s total liquidations. ETH long liquidations are at $34.56 million, while shorts are at only $8.25 million, according to data from Coinglass.
Coinglass data also shows that Ethereum’s open interest has remained relatively flat for the past four days, further strengthening the sideways thesis. If ETH goes below the $3,029 support, it may begin a brief bearish trend.
However, the $2,852 to $3,300 key range is also proving strong as ETH may not see any sustained move outside in the next few weeks, except if the price of Bitcoin sees a significant spike.
Ethereum is trading around $3,067, down 0.3% on the day.
Bitcoin, altcoins, stablecoins FAQs
Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as money. This form of payment cannot be controlled by any one person, group, or entity, which eliminates the need for third-party participation during financial transactions.
Altcoins are any cryptocurrency apart from Bitcoin, but some also regard Ethereum as a non-altcoin because it is from these two cryptocurrencies that forking happens. If this is true, then Litecoin is the first altcoin, forked from the Bitcoin protocol and, therefore, an “improved” version of it.
Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset it represents. To achieve this, the value of any one stablecoin is pegged to a commodity or financial instrument, such as the US Dollar (USD), with its supply regulated by an algorithm or demand. The main goal of stablecoins is to provide an on/off-ramp for investors willing to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value since cryptocurrencies, in general, are subject to volatility.
Bitcoin dominance is the ratio of Bitcoin’s market capitalization to the total market capitalization of all cryptocurrencies combined. It provides a clear picture of Bitcoin’s interest among investors. A high BTC dominance typically happens before and during a bull run, in which investors resort to investing in relatively stable and high market capitalization cryptocurrency like Bitcoin. A drop in BTC dominance usually means that investors are moving their capital and/or profits to altcoins in a quest for higher returns, which usually triggers an explosion of altcoin rallies.
