Veteran Trader Peter Brandt Sounds Alarm
Renowned crypto analyst Peter Brandt has issued a cautionary statement regarding Ethereum (ETH), the second-largest digital asset in terms of market capitalization. Brandt, who has a following of over 707,300 on the popular social media platform X, warns that ETH could experience a significant crash, causing its value to plummet below $700.
Chart Patterns Not Always Reliable
In his message to followers, Brandt emphasizes that classical chart patterns in price charts are not always reliable and frequently fall short of textbook predictions. However, he suggests that if the current rising wedge pattern exhibited by Ethereum adheres to the expected script, the price target could be $1,000, with a potential drop to $650.
Insights into Technical Analysis
Responding to a follower’s query about whether the pattern Brandt identified as a rising wedge could be interpreted as an ascending triangle, a more optimistic technical analysis pattern, Brandt offers additional insights into his analysis process. He admits considering the ascending triangle interpretation and explains that in situations where he is uncertain about a pattern, he scrutinizes the closing price line chart to ascertain its true nature. In this case, he believes it resembles a wedge.
Potential 70% Decline for Ethereum
In the current market climate, Ethereum is valued at $2,156. If Brandt’s projected scenario were to unfold, and Ethereum’s price dropped to $650, investors would face a substantial decline of nearly 70% in the value of this top smart contract platform.
Exercising Caution in High-Risk Investments
As with any investment, it is crucial for investors to conduct thorough research and exercise due diligence before engaging in high-risk endeavors such as Bitcoin, cryptocurrency, or digital assets. It is important to recognize that transfers and trades in these domains come with inherent risks, and any losses incurred are the sole responsibility of the individuals involved.