Looking at an 89-minute chart of Ethereum (ETH), we see the potential for a new low for this move.
Elliot wave work is in line with our theory that big snapback rallies are false reversal patterns. Said differently, liquidation pressure is still the driving force in the market. We are also worried that people are not concerned enough yet about the magnitude of the decline to come.
Gann work on Ethereum (ETH) not shown here warns of a risk to a drop below 100. A considerable rally above 160 would be necessary to invalidate that work.
Bottom Line: Despite the drop , the biggest problem in crypto right now is the lack of fear of how bad things can get from the liquidation pressure. The Chinese want to break the crypto market and discourage people from using crypto as a way to escape Hong Kong and the mainland financial system. The Chinese mean business, and that is bad news for big coins like Ethereum (ETH).
DISCLOSURE: Token Metrics is a regular publication of information, analysis and commentary and does not provide individually tailored investment advice. The Token Metrics team has invested and advised in many blockchain companies. A complete list of the team disclosures, advisory roles and current holdings can be viewed here: https://blog.tokenmetrics.com/disclosures/.