Why Ethereum (ETH) Price Faces Impending 50% Collapse According to Crypto Veteran

Ethereum (ETH) has seen strong growth in recent months, with the price rising from around $1,500 in mid-October to over $2,170 at the time of writing. However, according to veteran commodities trader and crypto analyst Peter Brandt, ETH may be due for a significant pullback in the near future.

In a tweet posted earlier today, Brandt pointed out that ETH appears to be forming a “rising wedge” pattern on its price chart.

As he explained, “Classical chart patterns in price charts are not sacred — they fail to perform according to the textbooks all the time. But if the rising wedge in Ethereum $ETH complies with the script, the target is $1,000, then $650.”

Essentially, Brandt is suggesting that if this rising wedge pattern plays out as technical analysis would predict, the ETH price could fall back dramatically—first to around $1,000, representing a 50%+ retracement from current levels, and then potentially as low as $650.

Brandt disclosed that based on this analysis, he personally “shorted ETH on Friday,” betting on a price decline. However, he also set a protective break-even stop loss order, limiting his risk in case the pattern fails.

It remains to be seen whether Brandt’s bearish prediction will come true. But given his extensive experience successfully trading various markets and assets for decades, his view carries significant weight. With the crypto markets cooling in recent weeks after a very hot November, ETH bulls may want to keep a close eye on the charts as we head into 2024.

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Rene Peters
Rene Peters

Rene Peters is editor-in-chief of CaptainAltcoin and is responsible for editorial planning and business development. After his training as an accountant, he studied diplomacy and economics and held various positions in one of the management consultancies and in couple of digital marketing agencies. He is particularly interested in the long-term implications of blockchain technology for politics, society and the economy.

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