Daily Ethereum Price Forecast – ETH Gains 2.75% Against Bitcoin Despite CFTC Probe
Remember the Ethereum flash crash in June? It was front-page Ethereum news when it happened. Prices dropped from $365.79 to $0.10 in an instant, then recovered to $300.00 once the technical difficulties were overcome.
Apparently, regulators at the Commodity Futures Trading Commission (CFTC) remember the crash quite clearly, because the agency is investigating what happened with margin trading accounts during the crash.
Does this affect the Ethereum price forecast? Probably not.
There’s a chance margin trading rules could change, in which case ETH prices might take a hit. But U.S. regulators are not in the practice of curbing financial innovation, so a change would represent a sharp break from tradition.
Nevertheless, the mere whisper of a federal investigation would have sent ETH prices tumbling under last month’s trading conditions. But it appears they have toughened up now that China’s cryptocurrency crackdown is in the rearview mirror.
The Ethereum to USD exchange rate only fell 0.55% to $296.60. Better still, ETH rose 2.75% against Bitcoin.
Trading volumes were at the lower end of the spectrum, coming in at $339.4 million. However, the volume itself was widely dispersed across Ethereum’s network, further insulating its price from regulatory risk.
Besides, the flash crash didn’t happen on a shady cryptocurrency exchange; it happened on Coinbase’s GDAX exchange. That is about as legitimate as it gets in this burgeoning industry.
More to the point, the exchange owners didn’t close their doors and head for Mexico when things went sideways. They diligently refunded the money of all affected customers, reached out to regulators, and are complying with all relevant investigations.
We are still bullish on ETH. The upcoming Byzantium fork is likely to kick-start a rally that sends Ethereum prices above $400.00. Meanwhile, the development of use-cases can sustain that rally till ETH reaches our 2018 Ethereum price forecast of $1,000.
Also Read: Hold on to Ethereum for the Long Term