Veteran Trader Peter Brandt Predicts Ethereum Could Drop Below $2,000
Veteran trader Peter Brandt believes that Ethereum (ETH) may experience a significant drop in value, potentially reaching a level not seen since early November. Brandt suggests that Ethereum is forming a descending triangle pattern, which is typically considered bearish. If the cryptocurrency closes decisively below the lower boundary of this pattern, it could plummet to at least $1,893. Currently, Ethereum is trading at around $2,267.
Bull Flag Pattern Emerging for Bitcoin
Brandt also notes that Bitcoin (BTC) is forming a bull flag pattern on its daily chart. Bull flag patterns typically indicate the continuation of an upward trend. Bitcoin is currently trading at approximately $44,101.
Triple Divergence Detected in Bitcoin’s Daily Chart
Prior to his analysis on Ethereum and Bitcoin, Brandt identified a triple divergence between the Relative Strength Indicator (RSI) and price on Bitcoin’s daily chart from October to December. This divergence occurs when the price moves in the opposite direction of the indicator readings.
Ethereum/BTC Pair Shows Signs of Downward Trend
Brandt also points out that the ETH/BTC pair indicates a persistent downward trend with the formation of a descending triangle on the daily chart. This pattern suggests bearish sentiment for Ethereum against Bitcoin.
Hot Take: Ethereum Faces Potential Decline Below $2,000
Veteran trader Peter Brandt predicts that Ethereum could experience a significant decline if it breaks below the lower boundary of its descending triangle pattern. With Ethereum currently trading at around $2,267, it may face a drop to at least $1,893. This analysis highlights potential bearish sentiment for Ethereum, while also noting the formation of a bull flag pattern for Bitcoin, indicating a continuation of its upward trend.
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