u.today
Well-known crypto market analyst Peter Brandt has issued a warning about Ethereum (ETH) that has investors worried. Brandt, who is known for his more than 40 years of expertise in technical analysis, has spotted a series of patterns on the altcoin's chart that suggest a potential price crash.
Brandt's outlook suggests the completion of a five-month rectangle pattern, followed by a retest of the breakout point. In addition, he has seen a rising wedge formation forming on the intraday chart.
Based on this, Brandt announced that he is going short on Ethereum, with a price target of $1,651. This suggests that there could be a very painful 40% drop from the current market level of around $2,700.
Ether $ETH
— Peter Brandt (@PeterLBrandt) August 14, 2024
I am posting this not as a slam on ETH, even though I'm not a fan, but to describe how I trade - so ETHernuts, dont take offense. I am as quick to go long on a good pattern as short on a good pattern
1. 5-mo rectangle (my fav pattern) completed Aug 4
2. Retest of BO… pic.twitter.com/h89EAzP7cb
But, there's a but
At the same time, however, Brandt points out that it is still hard to predict whether the patterns will play out exactly as he sees them, if at all. Sometimes they do not work out the way you think they will, he warns.
His pessimistic prediction has gotten people talking in the crypto community, as investors ponder whether there is indeed a chance for a major price correction.
It is worth noting that while Brandt's outlook is based on technical analysis rather than personal opinion, he has his own history with the largest altcoin.
It is no secret that the trader does not put Ethereum on the same level as Bitcoin, thinks it is nothing more than garbage and has publicly shorted it before. However, this attempt to short the asset did not go as planned.