ETHUSD Analysis: Hong Kong to Open Cryptocurrency Trading to Retail Investors

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While Coinbase is launching an advertising campaign in Washington to convey to government officials that cryptocurrencies are technologies that can move the country forward, Hong Kong has taken a step towards a regulated cryptocurrency market.

The Hong Kong Securities and Futures Commission (SFC) announced on May 23 that rules for retail investors to trade cryptocurrencies on licensed exchanges will come into effect on June 1. It also became known that 152 applications have already been received from key industry players, professional associations and consulting firms.

The regulatory framework will cover important aspects, including asset storage security requirements, avoidance of conflicts of interest, and other standards.

Against the backdrop of positive news from Hong Kong, the price of cryptocurrencies rose yesterday. But today it is declining. For example, the price of ETH on Wednesday morning is down about 3% from the high of May 23rd.

The daily ETH chart shows a disturbing picture.

Firstly, the price of Ethereum tested the median line (1) of the ascending channel yesterday (shown in blue).

Secondly, the pattern of yesterday’s and today’s candlesticks can form a false breakout of balance B. And if the ETH price dynamics develops in the same direction as during the false breakout of balance A (in early May), then the ETH rate against USD may update the lows of the year.

FXOpen offers the world's most popular cryptocurrency CFDs*, including Bitcoin and Ethereum. Floating spreads, 1:2 leverage — at your service. Open your trading account now or learn more about crypto CFD trading with FXOpen.

*At FXOpen UK and FXOpen AU, Cryptocurrency CFDs are only available for trading by those clients categorised as Professional clients under FCA Rules and Professional clients under ASIC Rules respectively. They are not available for trading by Retail clients.

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

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