A weekend of active buying and selling in Ethereum turns out to be much ado about nothing...

Reported widely as a crucial event in the cryptocurrency Ethereum's history, an SEC meeting with the CFTC was rumoured to be scheduled to take place today. The premise of the meeting was supposedly to determine the legal status of Ethereum - whether or not it should be considered a security. By falling under the definition of a security, Ethereum would face many legal ramifications and would not be tradeable by many crypto exchanges in the United States.

The fear was that prices would plummet if Ethereum was indeed declared a security, despite the fact that the SEC chairman has previously stated that Ethereum is not one. Ethereum does not meet the traditional definition of a security and is likely to eventually be recognised legally as a currency with utilities that do not resemble those of a mere security. With this in mind, many traders were stocking up on lower-priced ETH in the hopes that a positive announcement would cause a burst in buying activity.

Neither has happened. Thus, the market has responded somewhat unenthusiastically. This is a case of sell the rumour, and don't know what to do without any news. It's an unusual place for the market to be in and will likely take a few days or even weeks for momentum to resume in Ethereum's recent growth patterns. Uncertainty may prevail for a little while before things pick back up.

It is interesting to see how this story, first cited in the Wall Street Journal, became de facto news until the moment itself passed, revealing it to be nothing more than unsubstantiated rumours. One has to wonder, who stands to benefit by creating news like this that is likely to cause suppression in prices and a relatively easy opportunity to buy up an asset for those who may be "in-the-know"? After all, this is a realm that is mostly unregulated, rife with rumours, scams, and pump and dump schemes. Who's to say that there weren't people involved in stirring up these rumours with selfish intentions in the wild west known as the cryptocurrency market?

A little day-trading side-note:

At the current moment, it seems to be a good time to pick up a little more Ethereum before the dust settles and momentum resumes. If the price spikes in the next few days or weeks, one could trade ETH into EOS before the mainnet launch in early June. This could result in healthy profits if timed well.

*This is not professional trading advice - it's just my opinion!

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source:

https://bitcoinexchangeguide.com/ethereum-security-ruling-sec-cftc-may-7-fake-news-fud/

image source:

https://www.dkfindout.com/us/science/light/what-is-mirage/