Knowledgeable commodity trader Peter Brandt, who has been in the trading business for almost four decades, shared on Twitter a Head and Shoulders pattern formed on the chart of the leading altcoin Ethereum. He warned in his tweet that he is not crypto-hater; He said that only for the second-largest crypto points to the formation of this pattern.
Creates bearish pattern for Ethereum, daily target: $2,276
Veteran trader Brandt shared a screenshot revealing the H&S pattern on an ETH chart. According to experts, this chart is a chart that shows a price reversal. Therefore, Brandt hints that the native cryptocurrency of the Ethereum platform may drop further in the future. However, the trader made a disclaimer, saying that he did not short (open a short position) ETH, although he did not strongly believe in the possibility of an ETH dump.
Tweedollarse that he is not a crypto-hater. That said, if you own Ethereum, you should be concerned about the existence of this bearish formation on the Ether chart. Cryptocoin. com
As we reported , earlier this year, Peter Brandt tweeted that he expects Ethereum to outperform Bitcoin significantly in the future. In a comment below this tweet, Brandt states that this H&S model has a “high” chance of working. In this case, he says his daily target would be $2,276.
Leading altcoin lost 18% in a week
Last week, since Sept. 16, Ether, the second-largest cryptocurrency, has lost almost 18 percent of its market cap; It fell from a four-month high of $3,674 to $2,877 in early today’s saadollar series. So far, ETH has recovered from the $3,000 level and is changing hands at $3,069 at the time of writing.
Ethereum price has been on the rise since August 5, when the long-awaited London hard fork took place. The EIP-1559 that comes with this hard fork aims to stabilize the transaction fee market, solidify the k value of ETH and combat the inflation rate from miner rewards, and since its first implementation, the $1 billion 297,000 ETH fee has been burned and removed from circulation. Most importantly, when this hard fork was launched, another step was taken towards the implementation of the Ethereum 2.0 update and the transition to the Proof-of-Stake (PoS) consensus algorithm.