Blocksmith Says: Wait for Recovery in BTC, ETH

Blockhead -
  • Ethereum’s price is testing the lower boundary of the upper range, with the next potential support just below US$3,000.
  • Sit tight and wait for current pullback to dissipate energy.

Ethereum, having failed to break out last week is wandering around in a sub-breakout range between US$3,486 and US$3,198. Its price is currently testing the lower boundary of the upper range and looking quite heavy here. If this level doesn’t hold then the next potential support is just below US$3,000.

Looking across to Bitcoin, and as discussed in the last note, its price is in a potential cycle low zone and aggressively testing support. The preferred view is for a recovery in both Ethereum as well as Bitcoin, but at this stage it all hinges on whether global equity indices can stage a recovery, and for now the price path is still down. Probably the prudent stance at the moment is sit tight and wait for current pullback to dissipate energy.