One key indicator that this down move was coming was that Ethereum (ETH) failed to lead. Ethereum (ETH) could not rally outright, and it did not breakout vs. Bitcoin ( BTC ).

Looking at Ethereum (ETH) on BitMEX, we see a diamond formation. Diamond formations can create compelling down moves. Right now, we see Ethereum (ETH) has broken below the bottom of the diamond formation near 165. If Ethereum (ETH) can not achieve two closes above 165, then the downside target of the diamond formation is 112.

Bottom Line: When something is supposed to go up, and it doesn't, it's going down. We fear that is the case with Ethereum (ETH). If there is no real case to buy crypto at all headed into the end of the year, then we fear the worst for the bigger coins.

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/.