Blocksmith Says: ETH to Drop Again

24 November 2022

The macro environment has become volatile and traditional correlations have snapped near term. The key call once again is that Dollar Index (DXY) is in a bottom a zone and we were expecting a swift take off once the local base was in place, and yet there has been a sharp pull back.  It’s not uncommon to see excess vol around bottoming zones and the call for dollar up, everything else down, is still on the table. 

Anyway with that backdrop, the recent move up in ETH looks to be countertrend with longer cycle trough expected lower around Christmastime. Price is currently stalling at a confluence of resistance (240 minute chart here) and is expected to retreat.  But a good close above US$1,227 would force a rethink.

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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