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Blocksmith Says: Pull Back in Sympathy With Global Risk

Table of Contents

  • Cryptocurrencies have been dragged down over concerns with the Fed’s rate hikes.
  • Next level of support for Ethereum stands at US$3,000, but it should recover.

Equity indices around the world have pulled back hard on concerns over the Federal Reserve’s rate hike programme and crypto has followed down.

Ethereum, having set up for a decent upside breakout and extension, has now pulled back to the February top zone and the next meaningful layer of support is around US$3,000.

My view remains that the intermediate term outlook for crypto is up and that equity markets will recover and continue higher again, chiefly because the mid-March low was that of a significant cycle and the upswing has not played out yet by a long stretch.

Once the market absorbs the impact of rate hikes, it should recover and with it the crypto complex. For now, the preferred view is sit tight and don’t panic bail out of hard-won long positions.