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 recently shared 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.
Follow us on X, Facebook and Telegram
Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
Check Price Action
Surf The Daily Hodl Mix
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Generated Image: DALLE3
