ETHEREUM FALLS AS SOUTH KOREA MOVES TO BAN EXCHANGES
The price of ethereum – and other cryptocurrencies – fell today, as news emerged that South Korea was readying a bill for cryptocurrencies trading.
The news adds problems to cryptocurrencies, which have been receiving negative headlines in the last few days. On Wednesday, Warren Buffet, warned that cryptocurrencies would not end well. It was also reported that South Korean officials had invaded several exchanges on suspicion of money laundering.
If the bill passes, it could be a major issue for bitcoin and other cryptocurrencies. This is because South Korea has some of the best-known exchanges in the world. 10% of all ethereum and 5% of all bitcoins are traded against the South Korean won respectively.
As you recall, in 2017, China banned all cryptocurrencies exchanges leading to a massive sell-off. However, trading continued in the over-the-counter (OTC) exchanges.
The latest news, while significant, could create a ‘buy the dip’ scenario. Remember, many countries like Russia have been open to the idea of blockchain. Therefore, like China showed us, if countries ban the exchanges, companies will move to other low-cost countries
As of this writing, the ETH/USD pair was down 10% and testing the week’s low of $1117.09.
In case of a reversal, traders should watch the $1216.35 and the $1239 levels as shown below.