Crypto trader-analyst Peter Brandt warns of a potential ETH price crash, citing bearish chart patterns.
Brandt has initiated a short position on ETH with a target price of 1651, aiming for a 3:1 risk-reward ratio.
While Brandt is bearish, other analysts remain optimistic about Ethereum’s long-term prospects.
Crypto analyst Peter Brandt on X has warned Ethereum traders of a further price decline. He believes that the recent price action is indicative of a potential downward trend.
Brandt, in a post on X, highlighted two bearish chart patterns. First is the formation of a rising wedge on the intraday chart, a bearish pattern that often precedes a price reversal.
The expert analysis also points to a completed 5-month rectangle pattern, which he considers his favorite pattern, on August 4th. The subsequent retest of the breakout level today indicates a potential weakness in the bullish momentum. He notes,
“I am posting this not as a slam on ETH, even though I’m not a fan, but to describe how I trade,” Brandt clarified in his tweet. “So, ethernuts, don’t take offense. I am as quick to go long on a good pattern as short on a good pattern.”
Based on his analysis, Brandt has taken a short position on ETH, setting a target price of $1651. This represents a potential reward-to-risk ratio of 3:1. However, Brandt acknowledges that patterns fail to deliver implications well more than 50% of the time and that he expects to take losses on a significant portion of his trades.
“I am never insulted when I am wrong,” Brandt said. “In fact, my assumption on every trade is that I will take a loss.”
It is important to note that technical analysis is not an exact science and that past performance is not indicative of future results. Traders should always conduct their own research and consider multiple factors before making any investment decisions. Brandt’s bearish outlook coincided with Ethereum’s recent market performance. ETH dropped over 4% in the past 24 hours and is trading at $2,604 . While it managed to reach a daily high of $2,775, the token failed to break towards the $2,800-$3,000 price level.
Ultimately, the price trajectory of ETH will depend on a variety of factors, including macroeconomic conditions, regulatory developments, and investor sentiment. Traders should closely monitor the market and be prepared to adjust their positions accordingly.
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