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Blocksmith Says: ETH Breaks Support But Cycle Not Bottomed

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Ethereum penetrated down through support as equity markets pushed down hard at the end of last week. Poor market sentiment is being driven, as much as anything else, by fears that the US Federal Reserve will aggressively hike rates through the rest of the year. In this fluid environment, the market is struggling to price in the worst case and is still reaching lower. This is dragging crypto down.

Ethererum technically is still within its January up channel and near potential channel support and is still approaching a meaningful cycle trough zone. But with that said, we should still hold off making a “value” Buy until we start seeing some downside stabilisation. It may look cheap now, but there is nothing to say it won’t get even cheaper.