He sees the price falling to $1,651, a level it has not reached since October 2023.
According to Brandt, Ethereum is currently trading at $2,627, which means the expected decline will be 36% of its current value. Brandt points out that Ethereum has been trading within a rectangular pattern since April, which is also known as a horizontal channel. This pattern occurs when the price of an asset fluctuates within a certain range for a period of time, with the upper line of the channel forming a resistance level, while the lower line forms a support level. In the case of Ethereum, resistance was at $4,000, and support was around $2,814.
Ethereum’s volatility phase ended on August 4 when the price broke below the lower line of the rectangle pattern. The asset typically retests the breakout level after breaking out of an volatility pattern to determine whether that level will act as support or resistance. According to Brandt, Ethereum is currently retesting the breakout level to assess whether the price will hold or fail.
The expert also pointed out a rising wedge pattern on the intraday chart, which is formed when the price makes successive higher highs and lows, but the gap between them narrows, creating a wedge shape. This pattern is usually a bearish signal indicating a possible trend reversal.
