By Nathan Ferguson
Ethereum’s price movement has seen some substantial surge within the past few days as bearish momentum and FUD subside. Nevertheless, black swan events and unforeseen risks may send the leading altcoin downside.
One factor that could trigger more pressure on ETH remains crypto regulation. The latest Altcoin Daily Interview saw Michael Saylor of MicroStrategy dodging questions about Ethereum. However, he said PoS (Proof-of-Stake) platforms are securities. That comment could ensure a far-reaching regulatory impact for ETH, especially as the alt gears toward a Proof-of-Stake consensus mechanism.
Saylor stated that selling securities to the public without disclosures meant securities liability even if it’s technically advanced. PoS blockchains, including Ethereum, may feel regulatory pressure if authorities adopt Saylor’s view. Such developments will likely spoof investors, negatively impacting Ether’s price movements.
Meanwhile, Ethereum saw its price action bottoming beneath $1K in mid-June. The altcoin seemed to secure new stable support. Nevertheless, bullish trials since then remained insufficient, leading to minor upticks. Such scenarios show the absence of investor confidence as they could have massively bought the dip.
ETH’s Low Ride
An alternative standpoint perceives Ethereum’s latest bottom as a relief rally resurgence kick-start. Investors may be waiting for assurance of the end of the worst before eventually resorting to massive buys. Regulatory debates could be one of the reasons investors are still cautious.
Active Ethereum addresses have significantly increased since June’s final week, regardless of these concerns. Addressing holding over 10K ETH also surged substantially within the past five days. Moreover, address activity experienced a notable increase from June 26. That saw receiving addresses outshining sending addresses. Thus more individuals bought the dip. Moreover, the latest data showed receiving addresses increased to 241,163 by July 7, whereas sending addresses stayed slightly lower near 240,274.
Ethereum’s Status
Ethereum’s near-term performance shows impressive demand that has sustained its price action beyond $1000. Nevertheless, the long-term picture stays within an uncertain region, with regulatory talks lurking within the vicinity. The crypto market has underperformed during clampdowns.
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