One of the most experienced traders in the cryptocurrency industry, Peter Brandt, shared a successful Ethereum trade made by Satoshi Papers editor Tuur Demeester. The trade was mostly based on technical analysis and may provide us with a forecast for the future.
At the end of July, Ethereum entered a rising wedge pattern, in which it moved for more than a month. Considering the general trend on the asset, the expert assumed that the ascending wedge would end with a downward volatility spike, which was indeed the case after the bearish driver appeared on the market.
The breakdown of the lower border of the wedge sent Ethereum to the $1,400 price range, bringing traders back to July's range.
Usually, experienced traders avoid short positions on the market as they bring significantly larger risks to traders' portfolios and should not be opened without the proper risk management that would include certain take-profit and stop-loss values.
Thankfully, Demeester used all the rules when shorting an asset that allowed him to close his position at the right time, which was noted by Brandt.
What's next for Ethereum?
With the dropout from the ascending wedge, Ethereum returns to the downtrend it has been moving in since November 2021. The continuation of the bearish trend is most likely unquestionable until the Merge update goes live.
Unfortunately, the on-chain data suggests investors are not interested in the big update and do not expect anything from it. The activity of the large wallet returned to an anemic level, and the network's revenue is still at pre-bullrun levels.
At press time, Ethereum is changing hands at $1,586 with a 2.2% price increase in the last 24 hours.