Cryptocurrency Analyst Warns of Potential Ethereum Correction, Identifies Price Targets
A crypto trader has suggested that Ethereum (ETH) might be heading towards a correction based on a potential chart pattern. Ali Martinez, an analyst, shared with his followers on the social media platform X that ETH could be in the process of forming a rising wedge pattern. This pattern is commonly seen as a bearish signal, indicating the likelihood of further downward price movement following a bounce.
Martinez mentioned that the potential correction could lead Ethereum to a price level of $2,350. However, he also pointed out that if ETH manages to close above $2,800, the bearish scenario might no longer hold. Currently, Ethereum is trading at $2,567. Over the past 24 hours, the second-ranked cryptocurrency by market capitalization has experienced a decline of more than 4%, with nearly a 3% decrease over the past week.
Notably, Martinez is not the only analyst who has highlighted Ethereum’s possible rising wedge pattern. Veteran trader Peter Brandt recently cautioned that this pattern could signal a drop in Ethereum’s price below $2,000. Brandt explained his trading approach, emphasizing that he is open to both long and short positions based on patterns he observes. He outlined specific technical aspects, such as a five-month rectangle completion on August 4th, a breakout line retest on August 14th, and a rising wedge pattern on the intraday chart.
Brandt indicated a short position with a risk-reward ratio of over 3 to 1, setting a target at $1,651. He also acknowledged the inherent uncertainty in trading patterns, noting that they fail to materialize as expected more than half the time. Brandt emphasized his readiness to accept losses as a natural part of trading, regardless of his trading bias.
It is essential for investors to stay informed about developments in the crypto market, particularly regarding potential price movements in major cryptocurrencies like Ethereum. By analyzing technical patterns and market trends, traders can make informed decisions to navigate the volatile nature of the crypto market effectively.
