Legendary trader Peter Brandt has recently updated his outlook on the Ethereum (ETH) price chart, highlighting a worrying pattern. Thus, Brandt has identified a controversial head-and-shoulders top formation, which is typically seen as a bearish indicator, suggesting that the price may soon fall.
This pattern usually signals a reversal from a bullish trend to a bearish one, often resulting in a significant drop in price.
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Despite identifying this bearish pattern, Brandt stressed that he is not short on cryptocurrencies. This is particularly interesting given that just a month ago, in early May, Brandt announced that he was officially short on Ethereum futures.
However, at that time, he made it clear that he refrains from shorting the spot market due to counterparty risk and always uses stop-loss orders to manage his risk.
This is# an arguable head and shoulders top. I do NOT short cryptos pic.twitter.com/gjC0OPoJm3
— Peter Brandt (@PeterLBrandt) June 11, 2024
Brandt's current stance seems to be a shift from his previous position. While he is now signaling a potential bearish trend, the price of ETH has continued to rise. Currently trading at $3,500, the altcoin has seen a significant increase from its price a month ago, when it was trading at less than $2,900.
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The head and shoulders top pattern highlighted by Brandt could be a critical warning for traders and investors. If the pattern holds true, the price of Ethereum could face a downturn in the near future. However, the market's recent behavior suggests a complex scenario, where traditional chart patterns and market sentiment are not entirely in tune.