Ethereum Bearish Formation Identified by Trading Expert Peter Brandt – Discover His Price Targets
Renowned trader Peter Brandt has issued a cautionary note regarding Ethereum (ETH), suggesting the potential emergence of a bearish pattern that might drive its value below $2,000. Brandt, addressing his substantial following of 735,500 individuals on the social media platform X, highlighted the formation of a rising wedge pattern on Ethereum’s four-hour chart. This pattern, known for signaling a bearish trend, typically indicates a downward price movement following a bounce.
Brandt emphasized that his intention was not to criticize ETH but rather to illustrate his trading approach. He outlined the key technical aspects driving his analysis: the completion of a five-month rectangle pattern on August 4th, a breakout line retest on August 14th, and the observation of a rising wedge on the intraday chart. The trader indicated a short position with a defined risk level, stating that a breach above $2,961 would prompt him to exit the trade, with a target set at $1,651, offering a risk-reward ratio exceeding 3 to 1. Brandt acknowledged the inherent uncertainty in pattern-based trading, noting that the failure rate of such patterns surpasses 50%.
In a recent update, Brandt shared a comparative chart projecting that the Solana (SOL) blockchain, a smart contract platform, is poised to outperform Ethereum in the foreseeable future. He underscored fundamental disparities between the two networks, characterizing Ethereum as cumbersome, expensive, and flawed in its claim of decentralization, while praising Solana for its user-friendly interface and robust foundation. Brandt predicted a potential 100% gain for Solana relative to Ethereum in the coming months, suggesting a sustained trend favoring Solana over its competitor.
At the time of reporting, Ethereum was trading at $2,667, reflecting a marginal decline over the past 24 hours. Brandt’s insights and technical analysis serve as valuable inputs for traders and enthusiasts navigating the dynamic landscape of cryptocurrency markets.
