ETH, the SEC, and ZEC
“A significant part of our financial system is growing—and growing faster and is about to overtake the entire commercial banking system—that has far less regulation and transparency,” Gary Gensler, SEC Chairman (8/10/2022).
In a recent article in the Wall Street Journal entitled “Regulators Weigh Asking Hedge Funds to Report Crypto Exposure,” SEC chairman Gary Gensler stated that the SEC is coming down on crypto. While this is nothing new, it may create a flood of negative headlines between now and the end of August. The arrest of the suspected developer of Tornado Cash (TORN) is an additional warning sign of massive government action. These developments could keep crypto in a range when and if ETH hits $2,100.
If Ethereum is above $1,867, there is a good chance it will move to the next quant resistance level at $2,100.
In September, our upside target for bitcoin is either $30,000 or $39,000.
ZEC: 2-Week Chart
$76 seems like a key pivot for Z-cash. If Z-cash remains above $76, the ultimate target maybe $100. If ZEC went to $100, it might make sense to look to add to positions on a dip.
In the event of a dip, $71, $68, or $61 should act as support. We would use those levels as entry levels for any possible up move after Labor Day.
The privacy narrative is not going away. Tornado Cash’s apparent demise allows ZEC to come to the forefront. ZEC is a cryptocurrency that may make sense to buy on more minor dips near September and any more significant dips in November. We believe the ETH may trade in a sideways box after one final push. Regarding the overall market, there may be a dip in the second half of August.