The Weak Ethereum (ETH) Price Chart
Peter Brandt, a legendary trader, has once again expressed his bearish outlook on Ethereum (ETH). He believes that taking a short position on Ethereum is the best approach at this time. Brandt clarifies that he is a swing trader and not a long-term holder of Ethereum.
Brandt’s opinion is supported by a price chart that shows Ethereum hovering around the resistance point at $2,448.25. Although Ethereum has experienced significant growth in recent months, Brandt does not believe it will continue to break out in the future.
Peter Brandt’s Bearish Stance
A few weeks ago, Peter Brandt revealed that he had shorted Ethereum between $600 and $1000. Despite this, Ethereum’s valuation has not experienced a significant drop, partly due to market sentiment regarding the potential approval of a Bitcoin Exchange Traded Fund (ETF) by the US Securities and Exchange Commission (SEC).
Brandt argues that even though Ethereum has been resilient due to its correlation with Bitcoin, it will eventually fall below the $2,100 support zone. He believes that if it does fall and then bounces back, it won’t be a big deal for him.
The Impact of the Ethereum Dencun Upgrade
One of Peter Brandt’s concerns about Ethereum is its high fees and slow transaction speed, which make it less usable compared to alternatives like Solana. He even suggests that Ethereum may not remain a listed asset in the next 10 years.
However, there is hope for Ethereum with the upcoming Dencun Upgrade, which will employ Proto-Danksharding to help scale up the network. This upgrade is expected to enhance layer-2 scaling solutions like Arbitrum, Optimism, and Base, and help Ethereum achieve its goals.
Additionally, the potential approval of an Ethereum ETF may contribute to a more stable valuation for the protocol.
Hot Take: Peter Brandt Remains Bearish on Ethereum
Peter Brandt’s recent comments reiterate his bearish stance on Ethereum. Despite its recent price surge, Brandt believes that Ethereum lacks underlying strength and is likely to experience a significant drop in value. He continues to advocate for shorting Ethereum and expresses his skepticism about its long-term viability. However, with the upcoming Dencun Upgrade and the potential approval of an Ethereum ETF, there is still a chance for the protocol to overcome its challenges and achieve success in the future.
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