Seasoned commodity trader Peter Brandt, who has been trading since the 1970s, has taken to Twitter to share one more classical chart. This time, it is related to the second largest cryptocurrency, Ethereum.
"POSSIBLE descending triangle"
Peter Brandt has shared an Ethereum chart with a pattern on it which—he warned—could only possibly be a descending triangle. He explained that this is a downside pattern and, should it not dissolve immediately, "it would not be constructive."
A descending triangle usually means that downside momentum is building up and the price of an asset is likely to break downward soon.
Classical charting 101— Peter Brandt (@PeterLBrandt) June 7, 2022
This is a POSSIBLE descending triangle. A downside completion, unless immediately nullified, would not be constructive$ETHUSD pic.twitter.com/33kOZK4tjF
Major correction for ETH predicted
In early March this year, the seasoned chartist tweeted that he expected a major correction to hit Ethereum, which was trading in the $2,900 zone back then.
By now, the second largest crypto has plunged to the $1,700 level. ETH began to plummet after Bitcoin when, in the first days of May, the Fed implemented a historic hike of the interest rate, and then it was followed by the collapse of the Terra blockchain along with its coins—LUNA and UST stablecoin.
$666 million in ETH shorts liquidated
Yesterday, Ethereum attempted to rise from $1,810 to over $1,900, and the market witnessed a staggering liquidation of ETH short trades worth approximately $666 million. The majority of those liquidated trades were placed on Bitfinex exchange.
However, by now, ETH has dropped even lower than the level it started from and is exchanging hands near $1,700.