Ethereum Classic Invalidates its 1-2 Setup: Warning Shot?Ethereum Classic ( ETCUSD ) spiked down HARD along with the rest of the crypto universe between 12/3 and 12/4! The whole sector crashed so hard, in fact, that many technical supports were broken with ETC being no exception. Breaking below the 32-38 range means that ETC has pulled back LOWER than the origin-point of what we were calling the Subwave (i), so the purple primary impulsive path has been invalidated. We have more or less confirmed that the bearish red alt pattern is in effect.
More specifically, I have added the new GREEN pattern which interprets the correction from May 2021 to present-day as an Elliott Wave "double-zigzag", an uncommon but not rare formation. Double-zigzags (or double-threes) are 3-wave corrective patterns in which each subwave is ALSO a 3-wave corrective pattern. In the case of ETC, we have all zigzags for subwaves within the larger green double-zigzag pattern. In order to prevent confusion, we use W-X-Y nomenclature to describe the subwaves of a double-zigzag in Elliott Wave Theory.
While this invalidates our immediate upside setup that would've gotten us into the subwave (iii), it does also mean that we cannot project a top at this moment due to the lack of a clear (i)-(ii). And that may be a good thing because what we were calling ETC's subwave (i) was PATHETIC! This gives ETC and many other cryptos a mulligan to get us a better subwave (i). Relying solely on the big picture pattern we have at this moment, I would roughly expect any rally to take us to the 0.382-0.618 extensions of the larger structure from March 2020 - May 2021, which would fall between 131 and 337, but these are very crude estimates.
Other cryptos that have also invalidated their (i)-(ii) setups just like ETC are BCH, FIL and EOS . All of these cryptos were underperforming similarly with unimpressive subwave (i) extensions, and now they all have a blank slate to redeem themselves.
While there is a bit of 'doom and gloom' in these aforementioned cryptos, BTC , ETH, DOT, XLM and MATIC all have their upside setups still intact despite the big selloff. BTC barely hangs onto its nested 1-2,i-ii setup by a thread, but ETH pulled back almost perfectly. This means that our overall big picture targets for subwaves (iii) and (v) are still valid for these cryptos. Ethereum MUST continue to hold its 3307 major support while Bitcoin MUST hold its 39,600 major support. Failure of these two main cryptos to hold their majors supports would be a HUGE warning for the entire crypto space!
Finally, we have LTC, DASH, SOL and LINK. These cryptos invalidated their NESTED 1-2,i-ii setups but not their overall (i)-(ii) setups. What this means is that we can interpret their rallies from summer 2021 until this week as A-B-C 'corrective' rallies, which is indicative of these cryptos potentially continuing their overall structures in the form of 'ending diagonals'. Diagonals subdivide into 5-wave structures but are choppy with lots of overlap, and their subwaves take the form of 3-wave A-B-C structures.
I use Elliott Wave analysis to project price levels for different assets and asset classes. EW is a form a technical analysis that is absolutely NOT based on fundamentals. Please be aware that this video is not intended to act as financial advice. I am not a trained or certified financial professional. You may invest based on a strategy tailored to your own skill and risk-tolerance levels.
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