In this article we will give you an update on Cryptos from last week, when we highlighted a bearish view for ETH and cryptocurrencies in general. Since then, market came even lower in five waves, so it appears that bears are confirmed.
In Elliott wave theory, a five-wave reversal indicate a change in the trend, therefore we can expect a trend continuation after a corrective retracement.
As you can see, ETHUSD made a five-wave reversal down, which confirms resistance in place and we can expect more weakness, at least in three waves (A)/(1)-(B)/(2)-(C)/(3). Currently we are tracking wave (B)/(2) pullback that can find the resistance here in the 3100-3300 area and from where we will have to be aware of a continuation lower within wave (C)/(3), at least towards 2500 area for wave (C), if not even lower for wave (3). Invalidation level is at 3600.
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