According to U.Today, veteran trader Peter Brandt has recently shared his current trading strategy, which includes Ethereum, the second-largest cryptocurrency by market capitalization. The U.S. Securities and Exchange Commission (SEC) has approved applications for exchange-traded funds (ETFs) linked to Ethereum's price, potentially paving the way for these products to start trading later this year. Over the weekend, Ethereum's value increased, driven by the optimism following the approval of U.S. Ethereum ETF applications. At the time of the report, Ethereum was up 2.38% in the previous 24 hours, reaching $3,905, with a high of $3,950.
Brandt's strategy is based on classical charting principles, a methodology he has refined over his 40-year trading career. As a swing trader, Brandt meticulously identifies and acts on pattern breakouts by drawing lines on charts. He has revealed that he is currently long on Ethereum in the spot market. Swing trading is a strategy that seeks to capture gains in a financial instrument over an intermediate time frame, which can range from days to weeks.
Brandt's swing trading approach involves a comprehensive analysis of price charts to identify crucial support and resistance levels and use trend lines to predict possible pattern breakouts or breakdowns. Brandt primarily uses technical analysis to find potential entry and exit points, as well as defined chart patterns. In a recent tweet, Brandt posted an Ethereum chart highlighting a breakout with a target of $4,083. His current position, being long on Ethereum, suggests his anticipation that Ethereum's price might increase. This expectation appears to be based on his analysis of Ethereum's price movements and broader market trends.
Despite having a 55% success rate in his trades, Brandt never underestimates the importance of risk management, often emphasizing the use of stop-loss orders. This disciplined approach ensures that even if the market moves against his position, the loss will be contained within an acceptable range.