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Blocksmith Says: ETH Holding Support for Now

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  • Ethereum has started to base support at US$3,010, and RSI is trying to inflect up, which should lead price.

Two key drivers for crypto’s recent pullback are the sell-off in global risk, especially technology shares and inflation as seen through the US 10-year yield.

It looks like US yields at 2.74% are starting to struggle to the upside, while the S&P500 Index is tentatively trying to form a mid-cycle low. This is by no means a lay up trade yet, but some sort of rotation looks to be setting up. This should favour Ethereum.

Ethereum has started to base at key support around US$3,010 and RSI in the subwindow is trying to inflect up, which should lead price. What we are looking for is a price trajectory back across the recent range and another attack on the breakout level at US$3,485.

The entire up and down price structure since last January continues to have the look of a longer term base, which should propel price higher through the breakout level, which is the top of the base.