Veteran trader Peter Brandt, a man with a solid reputation in the cryptocurrency market, offered an important analysis on the future of Ethereum (ETH). Brandt’s chart analysis suggests that Ethereum is showing signs of a significant decline in value. Brandt emphasizes that Ethereum is likely forming a bearish triangle formation, and such formations are generally bearish.
According to Brandt’s analysis, the descending triangle formed by Ethereum could signal a significant decline. Brandt warns that if there is a close below the lower bound of this formation, the value of Ethereum could drop to at least $1,893. is located.
Ethereum is trading at $2,267 at press time.
Another cryptocurrency analyzed by the experienced trader is Bitcoin. Brandt evaluated an important technical formation on Bitcoin’s daily chart. The trader stated that Bitcoin formed a bull flag pattern and pointed out possible bullish signals in the market.
A bull flag is a technical analysis pattern that indicates that the price of an asset is preparing to rise again after a short-term correction period. This pattern represents a process where the price gets stuck in a certain range and can then form a higher top.
On the other hand, the experienced trader, in his previous analysis, detected a triple difference between the Relative Strength Indicator (RSI) and the price on Bitcoin’s daily chart throughout the October-December period. had emphasized. RSI/price divergences indicate situations where price indicator readings move in the opposite direction, and these situations can often indicate trend reversals.
According to Brandt’s chart, Bitcoin price appears to have made three ascending peaks on the daily chart, while the RSI indicator made three corresponding bearish peaks in the third quarter.
Finally, Brandt says that on the Ethereum/Bitcoin trading pair, the ETH/BTC pair is showing a bearish trend with the formation of a descending triangle on the daily chart. Descending triangles are generally considered bearish patterns. According to Brandt, Ethereum has lost approximately 36% of its value against Bitcoin since the beginning of the year.
Brandt’s analyzes contain important information that is often taken into account and followed among players in the cryptocurrency market. However, future predictions in financial markets always involve uncertainty, so investors should act carefully. The cryptocurrency market can change quickly depending on news, regulations, technological developments and a number of other factors.
You can follow the current price movement here.