16.09.202118:16 Forex Analysis & Reviews: SEC negotiates Ethereum ETF approval, prefers altcoin over XRP token

The cryptocurrency market continues to develop actively and sets new historical highs, still led by Bitcoin and Ethereum. And if the main cryptocurrency has recently faded into the background, the market giants have tightly taken up the ETH ecosystem. For example, the Infura infrastructure platform has developed a tool that prevents excessive commission growth in the ether network. The introduction of this function will significantly increase the speed and number of transactions in the coin network. However, the representatives of Fidelity Investments made a really important step towards a new cycle of altcoin development.

It became known that recently, the CEO and representatives of the investment company held a closed meeting with representatives of the SEC. Entrepreneurs made a presentation where they revealed all the advantages of launching an ETF fund on the air in the United States. The main argument of the company was the rich infrastructure of the asset, which allows the development of related projects. According to the CEO of Fidelity, the market is ripe for the launch of the first ETF fund in America. There is no doubt that the formation of such an institution will accelerate the development of not only ETH, but also the entire market by leaps and bounds. The capitalization of the main altcoin will begin to grow rapidly, and the institutionalization of the market will accelerate significantly. An important factor that can positively influence the SEC's decision is its official position regarding altcoin.

During the trial between the SEC and Ripple, officials voiced their position regarding the ether. According to which altcoin is recognized as a commodity, since it has a rich infrastructure that has been developing for years. A more loyal attitude of the SEC to the ether can become a weighty argument in favor of making a positive decision regarding the launch of the first ETF fund in the United States. At the same time, there is a high probability that the commission will reject the application until the regulatory framework for cryptocurrencies is developed and approved in the United States. Meanwhile, the ETH infrastructure continues to develop, and related projects increasingly affect the quotes of the main altcoin. The influence of the second-level protocols on gas absorption has significantly increased. The thing is that slower first-level protocols consume more and more gas, while L2 solutions neutralize this problem. This indirectly increases the on-chain activity of the main ETH network, which allows the coin to become more independent and break through difficult resistance levels.

As of 13:00 UTC, the coin showed the largest gain from the top 10, having risen in price by 6%. The asset has successfully passed two difficult sales zones at $3,400 and $3,500 and continues to move up. Now the coin is quoted at $3,600, where it has met increased resistance and is consolidating. The cryptocurrency has been continuing its upward movement since September 13 and is approaching an important resistance zone at $3,700. On the four-hour chart, the currency is confidently moving up, despite a possible sideways stochastic. A correction will likely begin soon, as buyers failed to develop a bullish momentum after the purchase of the volumes offered by the bears.

The situation is even more pronounced on the daily chart. A bullish signal is given by the MACD, which continues the upward movement, as well as a stochastic confirming the strength of buyers. At the same time, the RSI is approaching the 60 mark and gradually reverses along the safe level. Everything points to a local consolidation, after which the coin will continue its upward movement to $4,000. The nearest resistance levels are concentrated at $3,750 and $3,900.