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Blocksmith Says: Ethereum to Continue Climbing

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Ethereum’s price currently sits at the December 2021 key level. The preferred view is that it continues to track higher, with the next intermediate level of interest around US$4,100.

The underlying trend in Ethereum continues to advance and its price has neatly channelled up from the mid-March low. Notice the red circle at the end of March: price tapped into the top of the channel but then pulled back net sideways until 1 April.

The ability to reach the top of the channel and the subsequent lateral rest phase is an indication of embedded power. Be alert to failures to reach targets or out of character pull backs: typically they imply some sort of bearish influence starting to assert itself behind price action.

We have also just cleared an important level at US$3,482. This is where there was a big spike from a low in price back in early December last year. Interestingly it is more or less the same level that launched the last rally leg up from October to November 2021.

This level clearly has authority and the proof now will be whether price finds support here and continues to track higher. The preferred view is that it does and the next intermediate level of interest would then be around US$4,100, which is roughly the base of the October to December top-out formation.