Legendary trader and analyst Peter Brandt detected a new ‘head and shoulders’ formation in the technical picture of Ethereum. If this pattern proves correct, the altcoin price is likely to experience a major reversal. Ethereum needs significant shocks to cushion this potential fallout.
More declines in Ethereum’s technical picture?
Ethereum is currently not in a good position based on on-chain metrics. At press time, the leading altcoin was down 6.3% to $3,450 amid a broader market slide. Thus, it further increased its losses from last week and reached 9.83%. However, Ethereum maintained its relative brightness for the month, rising 17.72% in the past month alone.
Peter Brandt stated in a chart he shared that the monthly chart shows a controversial head and shoulders upper formation. For context, the head and shoulders pattern is an indicator that describes the transition from a bullish pattern to a bear pattern. This technical setup comes with three tops, the middle of which is taller than the others. “This is a controversial head-and-shoulders top,” Brandt said, accompanied by the chart. “I don’t short cryptos,” he said.
Peter Brandt, who detected this trend, suggests that Ethereum, which is currently in a bearish trend, may fall much lower in the near term. According to CoinMarketCap data, the lowest level ETH dropped last month was $2,863.54. In case of a reversal of the trend identified by Peter Brandt, the $3,000 and $2,800 price marks will be the main support zones to watch.
Ethereum has more pressing concerns too!
This is a worrying situation. However, Ethereum has more pressing concerns right now. cryptokoin.comAs you follow from, the US SEC recently gave the green light to spot Ethereum ETFs. However, despite this, trading of the products has not started yet. With approval, the coast is already clear. However, concerns about liquidity grabs remain on the horizon. The question in mind is whether Ethereum can get a share of this, while Bitcoin ETFs are already receiving billions in net inflows.
What’s next for the leading altcoin?
The decline experienced by Ethereum last week is a micro factor that proves to be a period of change in the crypto’s history. Already, there are indications that at least one spot Ethereum ETF issuer may receive feedback on its S-1 filings this week. Negotiations behind the scenes remain unclear. However, market analysts are optimistic about these S-1 approvals moving forward.
If bullish predictions come true, it is possible that Ethereum will see a major rebound in price against Brandt’s expectations. By the way, it should be noted that Brandt has always been skeptical about Ether. However, in his last article on X, he said that he did not open a short position for the altcoin. This probably makes Ethereum cautious in case it makes an unexpected turn.
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