- The lawyer said that ETH cannot be considered fully decentralized despite its move to PoS.
- ETH could move toward $1,700 if the 20 EMA remains above the 50 EMA.
- Traders are also bullish on the ETH price action as the OBV also increased.
For a while, there has been some sort of debate if Ethereum (ETH) is a security or if the altcoin is a fully decentralized entity. While some have supported the notion that ETH was not sold as security, a few have chosen to oppose the viewpoint.
In all of these, John E. Deaton, a crypto enthusiast and vocal lawyer who backs Ripple (XRP), shared some insights on the matter. In his post on X (formerly Twitter), Deaton referred to a 2018 article written by Preston Bryne.
“unless @VitalikButerin subtly managed to telepathically hack everyone’s brains so buyers would participate in the pre-sale in an organized fashion, it would appear that a lot of Ether – enough Ether to move markets or, if the system migrates to proof-of-stake, enough to play a…— John E Deaton (@JohnEDeaton1) September 17, 2023
ETH Is Still Controversial
The article centered around ETH’s position as a security or not. In his conclusion, Bryne noted that Ethereum’s Initial Coin Offering (ICO) did not make it a financial instrument that should be deemed a security. Bryne said in the statement: “I do not think Ether tokens as they exist today should be classified as a security.”
However, he also noted that ETH, at that time, was not fully decentralized, and the project could be subject to regulatory scrutiny. He noted that “unless we can show that this Ether has been sold into the wider market, this chart lends itself to the proposition that Ethereum is not as decentralized as we might hope.”
In Deaton’s opinion, Ethereum’s transition to Proof-of-Stake (PoS) makes William Hinman’s conclusion about ETH’s decentralization status questionable.
In 2018, Hinman, who is a former director at the U.S. SEC made a speech explaining how Bitcoin (BTC) and ETH are not securities. This speech and some emails were part of the evidence Ripple used in defending itself that XRP is also not a security.
Bulls May Have the Day
Regardless of the back and forth, ETH has been able to sustain its price above $1,600. As per the 4-hour ETH/USD chart, the altcoin seemed to have moved away from the control of bears.
Furthermore, the Exponential Moving Average (EMA) indicated that ETH’s price could still increase. This is because the 20-day EMA (blue) was above the 50-day EMA (yellow). As a common trading strategy, the positions of the EMAs mean that traders are bullish, and ETH could establish another uptrend.
Additionally, the On Balance Volume (OBV) also increased. As an indicator that measures negative and positive volume flow, the OBV provides insights into the trading decisions of market players.
ETH/USD 4-Hour Chart (Source: TradingView)
Typically, a falling OBV means that the crowd sentiment is bearish. But ETH’s OBV was rising at press time, meaning there could be a good entry around $1,641 for short-term gains.
Disclaimer: The views, opinions, and information shared in this price prediction are published in good faith. Readers must do their research and due diligence. Any action taken by the reader is strictly at their own risk. Coin Edition and its affiliates will not be liable for direct or indirect damage or loss.
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