Veteran trader Peter Brandt comments on Ethereum price action as the market embarks on a fresh crypto rally.
Bitcoin, the largest cryptocurrency by market capitalization, surged to $44,000 for the first time since April 2022. Ethereum, the coin linked to the Ethereum blockchain network, also soared in response to the bullish impulse, touching highs of $2,312 in today's trading session.
In a new tweet, Brandt asks his 705,100 followers if Ethereum will emerge from the shadows anytime soon. He says that at least three narratives are possible, about which he launched a poll for his followers to participate in.
Brandt's three narratives include a classic wedge that targets the $900 price for ETH. The second narrative is a running wedge pattern, which, if verified, has a price target of $3,300.
The famed trader's third narrative is "Morphology ahead," which could imply that the Ethereum price action is still brewing and in the process of taking a particular form or structure. Brandt provides a visual representation of these price patterns.
The first option, the classic wedge, received 24% of votes in favor. The amount of 60.7% of respondents voted for the more likely option of a running wedge with a target of $3,300 given the current market standing. A total of 15.3% of the respondents voted for the 'Morphology ahead' option.
Typically, a wedge pattern can indicate either bullish or bearish price reversals. A rising wedge (which indicates a bearish reversal) or a descending wedge (which indicates a bullish reversal) are the two types of wedge patterns.
At the time of writing, ETH had gained 2.16% in the previous 24 hours and was trading at $2,264.
In ETF-related news, the Securities and Exchange Commission (SEC) has announced that it will take more than 45 days to review a rule change that would allow Grayscale to transform its Ethereum trust into an Ethereum spot ETF. The new deadline has been set for Jan. 25, 2024.