Blocksmith Says: Capitulating on ETH Breakdown Call

12 August 2022

Having to capitulate on breakdown call in ETH.  We cleared key resistance at $1705 twice and price pulled back in what was assumed to be a failed breakout. The CPI print brought a flurry of repositioning, but price has stubbornly stayed above.  Interestingly, Goldman Sachs Prime brokerage is reporting that they are seeing the biggest net buying and short covering since May as hedge fund managers throw in the towel on their short exposure.  So it looks like fuel is now being added to the fire.   My firm conviction remains that we are in a bear market rally which will fizzle and fail in style, but corrections can drag on and on and this one is doing just that.  

The chart below shows the November 2021 down channel top around $2380 as well as the 200 day exponential moving average around $2150.  Somewhere in that range lies a meaningful barrier (between 26% and 14% higher).  RSI is funnelling into what could easily be a set up for another push higher.  Looking up for the next month or so. 

Blockhead Team
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