In our view, last night's drop in Ethereum (ETH) made the bullish technical outlook stronger. ETHUSD bounced nicely off the 200-day moving average.

Also, after seeing the price action last night, we revised our wave count. We now believe the critical "previous 4th" is at 205. If ETHUSD can hold above 205, then a significant bottom is in fact in place.

Honestly, the only thing that may hold Ethereum back is tax-loss selling in alts.

Bottom Line: We hope Ethereum and other big coins can detach itself from the smaller alt-universe. If that is the case, Ethereum has a chance to lead "Big Coin Season." For us, the idea of Big Coin season means sharp rallies in BTC , ETH, LTC, and BCH.

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/.