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Today we look at the Nasdaq futures daily chart. The correlation with Ethereum since the big low in mid-June is 90%, so let’s see if the chart in Nas provides any further insight for the upside reversal we have been looking for in ETH (which could well now be underway).
The preferred view in Nasdaq is as follows: its price may have just bounced out of an 80-day cycle trough; this is not confirmed until we reach US$12,500, where price is due to pass up through the blue downtrend return line originating mid-August; this level also would also correspond with the top of a base formation.
If a new 80-day cycle has started up again, then the upside projection is US$14,000–14,500. This would represent a significant shift in risk to the upside which, statistically and sensibly, should drag ETH sentiment higher too.
So in my view, for Nasdaq US$12,500 is the next big stalking point and we are just 180 points away at the time of writing. Looking across at other equity index futures for confirmation at the moment, S&P500 futures are congruent and pushing up well; Nikkei futures are powering up in the current session as are Eurostoxx futures.
The dollar index, which should be inversely correlated, may have just topped and conversely gold may be bottoming (and we have discussed the strong positive correlation between gold and crypto in prior notes).
