Seasoned trader Peter Brandt is warning that Ethereum (ETH) may be forming a bearish setup that could send it plummeting below $2,000.
Brandt tells his 735,500 followers on the social media platform X that Ethereum is potentially forming a rising wedge pattern on the four-hour chart.
A rising wedge pattern is typically considered a bearish signal, indicating more downside price action after a bounce.
“I am posting this not as a slam on ETH, even though I’m not a fan, but to describe how I trade. So ETHernuts, don’t take offense. I am as quick to go long on a good pattern as short on a good pattern.
1. Five-month rectangle (my favorite pattern) completed August 4th.
2. Retest of breakout line [August 14th].
3. Rising wedge on intraday chart.
Measured risk short. Move above $2,961 and I cut and run. Target is $1,651, so trade is a 3+ to 1 risk-reward ratio. Patterns fail to deliver implications well more than 50% of the time. I am never insulted when I am wrong. In fact, my assumption on every trade is that I will take a loss.”
Brandt also recentlyshared a chart that indicates smart contract platform Solana (SOL) will decisively outperform its rival Ethereum (SOL/ETH) in the coming months and noted the trend may continue due to key differences between the two networks.
“In the battle between SOL and ETH it was inevitable there would be a clear winner. ETH: cumbersome, expensive, flawed, claims to be decentralized when it’s not. SOL: user friendly, great foundation. SOL should gain 100% on ETH in months ahead.”
Ethereum is trading for $2,667 at time of writing, down slightly in the last 24 hours.
Generated Image: DALLE3