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.

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