Blocksmith Says: ETH Flatlines – But Stay Alert
Today is one of those days where there is little to usefully add in terms of new insight. Sadly, that’s just the way it is in the markets sometimes and it reminds us of the phrase “waiting is doing”.. If there does not seem to be anything to do that would actually move the dial, then I suggest the best course is to do nothing and wait it out. Overtrading typically leads to mistakes and also chews up performance with transaction fees, so don’t do it.
In previous notes we have looked at the volatility indicator: average true range. This is still notably low in Ethereum and Crypto – in other words, there is very little movement. Yesterday, we looked at volatility compression as the Bollinger Bands started to squeeze together. This is generally a set up for an explosion into a higher volatility phase. At this stage, it’s hard to say whether it leads to an upside breakout or a breakdown. Price is flatlining mid-range, RSI is flatlining.
We are in the doldrums for now. Keep your powder dry.