Ethereum’s Potential Price Drop According to Trading Veteran
Trading veteran Peter L. Brandt has shared a bold prediction for major altcoin Ethereum (ETH). At press time, Ethereum was trading at $2,627. A drop to $1,651 would represent a 36% decline from the current value.
Analyzing Ethereum’s Trading Pattern
According to Brandt, Ethereum has been trading in a rectangular pattern since April, forming a horizontal channel. The upper line of this channel forms resistance at $4,000, while the lower line forms support near $2,814. The coin’s bottoming phase ended on August 4 when it broke below the bottom line.
After breaking out of a bottoming pattern, assets are often retested to determine support or resistance levels. Ethereum is currently retesting this breakout level to assess price stability. Additionally, a rising wedge pattern has been identified on the intraday chart, indicating a potential bearish reversal.
Brandt’s Prediction and Risk Management
Based on his analysis, Brandt holds a short position with a price target of $1,651 for Ethereum. The risk-to-reward ratio for this position is 3:1. To err on the side of caution, he has set a stop loss at $2,961 and will exit the trade if Ethereum prices rise above that level.
In conclusion, Brandt’s prediction suggests a significant price drop for Ethereum in the near future. Traders and investors should carefully monitor the price movements and consider risk management strategies to navigate potential market volatility.
