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Well-known crypto market analyst Peter Brandt has issued a warning about Ethereum (ETH) that has investors worried. Brandt, who is known for his more than 40 years of expertise in technical analysis, has spotted a series of patterns on the altcoin's chart that suggest a potential price crash.
Brandt's outlook suggests the completion of a five-month rectangle pattern, followed by a retest of the breakout point. In addition, he has seen a rising wedge formation forming on the intraday chart.
Mushumir ButtBased on this, Brandt announced that he is going short on Ethereum, with a price target of $1,651. This suggests that there could be a very painful 40% drop from the current market level of around $2,700.
But, there's a but
At the same time, however, Brandt points out that it is still hard to predict whether the patterns will play out exactly as he sees them, if at all. Sometimes they do not work out the way you think they will, he warns.
His pessimistic prediction has gotten people talking in the crypto community, as investors ponder whether there is indeed a chance for a major price correction.
Arman ShirinyanIt is worth noting that while Brandt's outlook is based on technical analysis rather than personal opinion, he has his own history with the largest altcoin.
It is no secret that the trader does not put Ethereum on the same level as Bitcoin, thinks it is nothing more than garbage and has publicly shorted it before. However, this attempt to short the asset did not go as planned.
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U.Today Editorial Team