Insurance Companies can’t Take Risks against Crypto Exchanges in South Korea: Ethereum (ETH) Technical Analysis
In the face of insurers’ unwillingness to offer services to exchanges in South Korea, Ethereum (ETH) prices are a bit stable, soaking sell pressure following that sharp declines on June 22. In fact, it’s up two percent in the last 24 hours and it appears a recovery is happening behind the scenes.
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Ask any business and they will tell you that they won’t function without an insurance cover. In most countries, it’s a legal requirement to insure assets and properties as insurance is that fortification shielding them from unseen disasters such as hacks for example.
So, just like any other business, crypto exchanges are for-profit and as facilitators contributing to the general liquidity of listed coins. They are in a nutshell indispensable in this sphere. Their only undoing is that all their activities are on-line accessible to anyone plugged in regardless of their geographical location.
Crypto and the underlying technology is global by design but the fact most exchanges are centralized breeds all sort of problems. These entities are without a doubt a honey pot for hackers to take aim at and those in South Korea can attest to that. Unfortunately because of that, insurers are not willing to offer their services.
After determined hackers managed to get behind the defense lines of BitHumb and CoinRail, both members of the Korea Blockchain Association (KBA) and making away with close to $82 million, insurers got fidgety pausing talks in the process. It was an unfortunate time because since April, the KBA and several insurance companies as Hanwha General Insurance Co. and Hyundai Marine & Fire Insurance Co ironing out issues on the way forward now that even the largest cryptocurrency exchanges in South Korea were not immune to security exploitations.
Through a spokesperson, the insurance companies said they were cautious and that despite “strong internal control system and security” the industry is still nascent without proper risk measurement parameters.
Ethereum (ETH) Technical Analysis
Week over week, Ethereum prices are still deep in the red. As it stands, ETH is 12 percent down but is relatively stable in the last 24 hours or so managing to keep losses in check. When we take a top-down approach, it seems lower time frame bull activities are just but vanity attempts since sell pressure is very strong in the weekly chart.
Our trading range is between the main support line at $400 and the April highs at around $850 and as it is, prices are near our main support after periods of strong depreciation in the last two months or so. All thanks to the last two months price action is when we can witness effort versus result attempts.
Remember, it took two months of incessant bears and light trading volumes to reverse April gains. So, it’s without a doubt this sell wave may as well be long coverings and that’s why waiting to see how prices react at $400 is important for our analysis.
Any break below that and sellers might go for the jugular at $350. On the flip side, any rejection of selling would be a launching pad for Ethereum bulls. Mind you, they are down more than 85 percent from April highs.
All things constant, ETH is stable and is up two percent in the last 24 hours. Despite this stability, June 22 candlestick is influential since it’s a break down candlestick and a pointer of trend direction. Going forward, in our ideal trade plan, we would like to see higher highs back above $500 retesting June 22 highs before we continue selling with targets at $350.
In that case, we suggest zooming in to the 4HR chart and fine tuning entries at around $500. If not and buyers jump in pushing prices strongly above $600 then our short term sell projection would be null and void.