Today, Ether has declined in many digital assets and has fallen after the market has reacted to the latest announcement that the People’s Bank of China (PBOC) has banned cryptocurrencies.
According to CNBC, the central bank has banned services that offer derivatives, including derivatives, order matching, token issuance, and cryptocurrencies.
According to a text translated by CNBC, “overseas crypto exchanges that use the Internet to serve domestic residents are also considered illegal financial activities,” the financial institution said.
The announcement clearly shows that both Bitcoin and Ether are cryptocurrencies with the same status as fiat currencies. It pointed out that they were not issued by financial authorities and explained them as illegal.
Cryptocurrencies responded sharply to the news, with Bitcoin declining almost 10% within four hours and Ethereum declining 12.1% in the meantime, according to CoinDesk data.
[Ed note: Investing in cryptocoins or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.]
Several market observers have taken part in this situation and provided their views on the latest news from the PBOC.
“This isn’t the first time China has banned digital assets, and it’s not the last. The move seen in today’s market isn’t more about the number of new investors in China than it is about China. Pat White, co-founder and CEO of Bitwave, said:
“People who have been using cryptocurrencies for some time saw China banning cryptocurrencies 10 times and priced it in the mental model.”
Jesse Proudman, co-founder and CEO of Makara, a crypto robo-advisor, also commented that many market observers would remain unwavering.
“If China is likely to be a virtue signaling to strengthen its position as a digital source, other countries in the world make these statements several times a year, widely admitting little or no action. increase.”
In addition to providing a perspective on the latest developments in the PBOC, several experts have provided technical analysis to shed light on the critical levels of support and resistance of Ether.
“$ 3000 is ultimately an important level of Ethereum, a psychological level, and the top of the trading range where Ethereum was stuck from May to August,” said the crypto investor, The Scott Melker, an analyst who hosts the Wolf Of All, said. Street podcast.
“The Bulls want this level to be maintained as a support for weekly charts.”
Jason Lau, COO of the crypto exchange Okcoin, shared a similar view, explaining the $ 3,000 level as a major resistance as it previously provided significant support.
“ETH has been running for more than $ 3,000 for more than 40 days before this recent move and couldn’t get it back, so there’s no doubt that it will hurt short-term emotions,” he added. rice field.
In addition, Lau said the $ 2,700 level, close to the 100-day moving average, looks like important support.
“On the downside, the moving averages of 100d and 200d are converging, and below both ($ 2700 and $ 2600), ETH will be at a level not seen since summer.”
David Keller, Chief Market Strategist at StockCharts.com, shared a similar view.
“The sudden drop in Ether pushed prices down to lows in the range of $ 2,700 to $ 2,750, which were established earlier this week,” he said.
“We have tested this range several times this week and have established this range as a new level of support.”
“Just before today’s price drop, Ether retested its resistance at around $ 3,100 and temporarily rose to $ 3,150 before it fell this morning,” Keller said.
“Currently, there is a clear trading range, with the downside being $ 2,700 to $ 2,750 and the upside being $ 3,100 to $ 3,150.”
“One of these levels is likely to go bankrupt in the next few days, and prices are expected to continue in the direction of that bankruptcy.”
Proudman also commented on how to determine the momentum of digital currencies in the short term.
“This weekend is important. With further consolidation and gains, the bull run will resume. Below $ 2,800, it could fall to $ 2,500.”
Disclosure: I own Bitcoin, Bitcoin Cash, Litecoin, Ethereum and EOS.