Blocksmith Says: ETH to Push Higher From Lower Level

7 September 2022

Ethereum 120-minute chart. Despite a promising lift off out of a new 40-day cycle trough yesterday, there has been a sudden pullback in risk as traders sold into the ostensible breakout. We had good power into yesterday’s top – 120 minute RSI was pushing hard into the 70 level with no bearish divergences and, as stated, the belief is that this is because a new longer cycle is driving the advance. 

At the same time gold, with which crypto is currently correlated and which also pulled back hard is attempting to bottom on a bullish momentum divergence and Nasdaq futures look to be in a downside termination pattern. 

The preferred view currently is that overall risk stabilises shortly and price continues to press higher, albeit from a lower level. 

Christopher Grafton
Christopher Grafton

Chris has been working in the markets for over 15 years variously as a broker, analyst and researcher. He is the author of a well-known book on Hurst cycles analysis, and runs his own market analysis software platform on Bloomberg. He’s also a keen student of both the cello and Brazilian Jiujitsu.

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