Crypto Industry News:
The chairman of the US Futures Trading Commission (CFTC) believes that Ether is a commodity and trading ETH futures will become a reality.
Heath Tarbert, the new president of CFTC, who took over the position of J. Christopher Giancarlo in July, presented his position on Ether, other cryptocurrencies and forked coins during the financial event Yahoo Finance Summit All Markets Summit.
Although the CFTC made it very clear that Bitcoin is a commodity, it is reported that for the first time the authority presented the vision of Ethereum, the second-largest cryptocurrency in terms of market capitalization. In addition, as the publication notes, the chairman of the CFTC also expects to trade Ethereum futures contracts on US markets.
"We spoke clearly about Bitcoin: Bitcoin is a commodity. We have not spoken anything about Ether - until now. [...] In my opinion, as president of CFTC, Ether is a commodity," he said.
According to the publication, Tarbert acknowledges the existing uncertainty about the status of altcoins. He claimed, however, that similar digital assets should be treated in a similar way.
Tarbert suggested that forked cryptocurrencies such as Bitcoin Cash or Ethereum Classic - those that are derived from the original underlying Blockchain - should be treated the same as the original assets. At the same time, the chair noted that the status of a forked coin could change if "the fork itself raises some issues with securities law as part of this classic Howey test."
"It is obvious that similar assets should be treated in a similar way. If the underlying asset, the original digital asset, was not specified as a security, and therefore is a commodity, most likely the forked resource will be the same," he said.
Technical Market Overview:
The ETH/USD pair has hit the 61% Fibonacci retracement located at the level of $195.88 and reversed immediately, hence the Bearish Engulfing candlestick pattern has been made. The bears are currently testing the local technical support located at the level of $185.05, but any violation of the level of $195.88 will lead to another leg up towards the technical resistance seen at the level of $202.70 and $215.73. The confirmation of the bottom of the wave (C) at the level of $151.30 will take place when bulls will break through the wave (B) top at the level of $223.50.
Weekly Pivot Points:
WR3 - $200.05
WR2 - $192.33
WR1 - $180.15
Weekly Pivot - $172.02
WS1 - $159.46
WS2 - $151.65
WS3 - $138.64
Trading recommendations:
The best strategy in the current market conditions is to trade with the larger timeframe trend, which is still up. All the shorter timeframe moves are still being treated as a counter-trend correction inside of the uptrend. When the wave 2 corrective cycles are completed, the market might will ready for another impulsive wave up of a higher degree and uptrend continuation.