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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