Seasoned Analyst Brandt Highlights Ethereum Rising Wedge Pattern Expects Price Decline to $1,645

Renowned crypto analyst Peter Brandt has identified bearish patterns for Ethereum, suggesting that it could face a major price decline. He believes Ether could drop to lows not seen since the fourth quarter of 2023.

Ether $ETH
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, dont take offense. I am as quick to go long on a good pattern as short on a good pattern
1. 5-mo rectangle (my fav pattern) completed Aug 4
2. Retest of BO... pic.twitter.com/h89EAzP7cb

- Peter Brandt (@PeterLBrandt) August 14, 2024

Brandt provided two charts to support his claims, with ETH price analysis on different timeframes.

Meanwhile, the price of Ethereum has declined significantly in the past 24 hours, dropping below $2,700. ETH trades at $2,644, with a 3.9% decline in the past 24 hours.

Peter Brandt Decodes Ethereum ETH's Price Action

According to Brandt, his analysis is not to spite Ethereum but to describe his trading pattern. He claims to adjust his trading strategy to buying or selling once he identifies a good chart pattern.

Brandt's 240-minute chart shows a rising wedge formation. This pattern often signals a potential bearish reversal.

The chart reveals ETH's price attempting to rally around the converging trendlines. However, the rising wedge often results in a drop in prices. Ethereum tested a vital breakout point when it broke above $2,700, but its price declined today due to low buying interest.

Moreover, the chart shows a declining Average Directional Index Indicator (ADX), confirming the weakening rally to ETH. This bearish pattern is often ideal for short trades, hence Brandt's bearish position.

Meanwhile, Brandt identified a five-month rectangle pattern on the daily chart. ETH broke below this rectangle on August 4 and continues to attempt a retest of the $2,933 resistance level. He believes a successful retest will likely lead to further price decline.

The analyst noted that ETH could touch a low of $1,645 if the bearish trend continues and the rejection at $2,933 occurs.

Notably, ETH last traded at $1,600 in October 2023. The 30-day Average True Range (ATR) indicator shows increased volatility, which could cause sudden price changes. The ATR has a reading of 181.02, implying that Ether's price could swing in either direction.

Although Brandt remains bearish on ETH, he advises his followers to be cautious since patterns can fail. Therefore, he urged his followers to set their stop loss just above $2,961, slightly above ETH's current resistance level.

Further, Brandt noted that ETH's trade offers users a favorable risk-to-reward ratio of 3:1. He stressed that accepting losses is part of his trade process.

Crypto Community Reacts to Peter Brandt Analysis

One X user, Max, reacted to Peter Brandt's Ether analysis. Max claimed that Brandt made a post a few days ago condemning ETH and praising SOL before the two assets declined, so his suggestions are not worth trusting. He said he would trade on the opposite side of Brandt's suggestions.

A couple days ago you posted a tweet slamming ETH and praising SOL, after which SOLETH dropped more than 15%. If I were you I'd consider laying off Twitter for a while. But as I'm not, I'll just take the opposite side of the bet

- Max (@efficiencymaxi) August 14, 2024

Conversely, another follower, Dr. Murlly, supported Brandt's analysis, stating that his focus on patterns and risk management is excellent. Murlly also noted that ETH can be quite volatile; hence, it is wise to have a clear entry and exit plan like the one Brandt provided.

Your focus on patterns and risk management is spot on.

ETH can be a wild ride, and it's wise to have clear entry and exit strategies like yours.

No shame in adjusting when the market doesn't cooperate.

Wishing you success on this one!

- drMurlly (@drMurlly) August 14, 2024

Meanwhile, CryptoFX believes Ethereum's price performance is linked to Bitcoin's movements. He claims that ETH will only trade at $2,100 if Bitcoin drops to the $48,000-$40,00 price range.

Keep in mind ETH hit $2100 when $BTC hit $48k. So what you're showing here is likely only to play out if $BTC went even below that, like low $40K. This is basically a short against the crypto market as a whole. The likely scenario is we get a double bottom on $ETH.

- CryptoFX (@Hurtfx1) August 14, 2024

ETH remains bearish today, reflecting Bitcoin's retracement below $60,000.

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