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A crypto analyst says ETH is signaling a potential “low-risk, high-reward opportunity” after the Securities and Exchange Commission killed a controversial accounting rule.
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Ether could be set for a “tactical breakout” after the US Securities and Exchange Commission revoked a crypto accounting rule that had made financial firms hesitant to offer crypto services, says a crypto analyst.
“This could be a pivotal moment for Ethereum, as it can potentially drive the expansion of DeFi services, positioning itself as the backbone of the ecosystem,” 10x Research head of research Markus Thielen said in a Jan. 23 markets report.
Ether may present a buying opportunity, says an analyst
On Jan. 23, an SEC Staff Accounting Bulletin (SAB) killed a rule called SAB 121 that required financial firms holding crypto to record them as liabilities on their balance sheets.
SAB 121 was published in March 2022 and the crypto industry has long sought to have it revoked.
Thielen said he is not typically a strong proponent of Ether (ETH) but the token’s current price chart formation “presents a compelling, low-risk, high-reward opportunity.”
10x Research’s Markus Thielen says that Ether could break above the current triangle pattern. Source: 10x Research
At the time of publication, ETH was trading at $3,325, at the time of writing, according to CoinMarketCap data. It touched a high of $3,707 this year on Jan. 7 but it has since retraced below $3,500 and has yet to recover above that level.
“ETH could break above the current triangle pattern with a prudent stop-loss near the recent low of $3,186,” Thielen said.
Predictions for Ether’s next move point to $7,000
In a Jan. 23 X post, pseudonymous crypto trader Titan of Crypto said that a $7,000 price for Ether “is inevitable,” while trader Crypto Caesar said that ETH “will explode soon.”
Related: Ethereum whales add $1B in ETH — Is the accumulation trend hinting at a $5K ETH price?
Ethereum co-founder and Consensys founder Joseph Lubin recently told Cointelegraph he believes two factors may influence Ether’s price.
Lubin said that Ether exchange-traded fund (ETF) issuers are hopeful that funds offering ETH staking could soon be given the regulatory go-ahead.
Lubin also suggested that the Trump family might expand its involvement in the crypto space by launching an Ethereum-based business.
“Based on what I am aware of, the Trump family will build one or more giant businesses on Ethereum,” Lubin said on Jan. 21.
Magazine: They solved crypto’s janky UX problem. You just haven’t noticed yet
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
This article first appeared at Cointelegraph.com News
