Market Commentary

Ethereum Rally Expected While Regulations Are Still in Question

Aisha Khan
2 Jan 2024 · 1 minute read

In a report on the first day of the year, Ethereum’s (ETH)'s exchange supply hit a historic low, representing just 8.04% of the overall token supply. This decrease in supply is viewed as a bullish signal, suggesting a potential easing of selling pressure on Ethereum (ETH).

A highly monitored cryptocurrency expert anticipates a significant surge of approximately 200% for a competitor of Ethereum (ETH). The projected breakout rally is contingent upon surpassing the resistance within the pattern, potentially propelling the alternative coin to a level not witnessed since April 2022.

Crypto as a whole saw an eventful 2023. Among the world’s global players, the USA played a significant role in taking legal action against Crypto. These included crypto platform, Binance, being ordered to settle over $4 billion with U.S. authorities, alongside the admission of guilt from its former CEO.

Later in the year, Senator Elizabeth Warren in the United States proposed legislation to tackle concerns surrounding the perceived misapplication of digital currencies in illicit activities such as money laundering, drug trafficking, and sanctions evasion. The Democratic Senator has introduced a bill advocating for heightened oversight and regulation within the realm of Bitcoin and cryptocurrencies.

Perhaps largely due to these circumstances, it is a rarity to find Congress members trading crypto. Not to mention, a scant number of lawmakers have been vocal in their support for the asset. 

In the past year, only one Congress member reported trading Ethereum. Rep. Michael Collins bought ETH in three transactions - Oct 9, Nov 5, and Dec 10 respectively. All three transactions summed up to a total amount of a maximum of $45,000. He also sold between $1,001 and $15,000 on Nov 24.