Ethereum is shaky and vulnerable at the $1,200 level as a bearish trend prevails. The second most popular cryptocurrency seems to have some tailwind after the global payment processor Visa proposed a solution for automatic funding from Ethereum wallets.
It should be noted that auto payments for recurring bills are not possible for self-custodial wallets. As such, Visa proposed relying on smart contracts or account abstraction. However, there are regulatory concerns. The US House Financial Services Committee reintroduced legislation on December 19 for creating innovation offices within government agencies dealing with financial services. Patrick McHenry, North Carolina Representative, said companies could apply for an enforceable compliance agreement with offices located in agencies like the SEC and Commodity Futures and Trading Commission (CFTC).
As such, investors believe Ether could touch sub-$1,000 prices as the DXY dollar index loses strength. An analyst on Twitter who goes by the handle CryptoCondom believes the next couple of months to be extremely bearish for the crypto markets. Analysts say the ongoing bearish macroeconomic movement has negatively hit investors’ sentiment. But then there has been an increase in investor gains as the influx of capital continued uninterrupted. The positive trend is an indicator of stability, but fluctuations are likely to continue in the overall market.
At the time of writing this article, Ether was up by 0.02% in the last 24 hours and trading at $1,208. However, derivatives metrics suggest that traders might fear lows. Demand remains absent for leverage buying. Ether is expected to hit $1,680 by the end of the year.
