Legendary merchant Peter Brandt has recently updated its outlook on the Ethereum (ETH) price chart, highlighting a worrying pattern. Therefore, Brandt has identified a controversial top head and shoulders formation, which is normally considered a bearish indicator, suggesting that the price could fall soon.
Legendary merchant Peter Brandt has recently updated its outlook on the Ethereum (ETH) price chart, highlighting a worrying pattern. Therefore, Brandt has identified a controversial top head and shoulders formation, which is normally considered a bearish indicator, suggesting that the price could fall soon.
This pattern usually indicates a reversal from an uptrend to a downtrend, often resulting in a significant price drop.
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Despite identifying this bearish pattern, Brandt emphasized that he is not short of cryptocurrencies. This is particularly interesting given that just a month ago, in early May, Brandt announced that he was officially short Ethereum futures.
However, at the time he made it clear that he refrained from short selling in the spot market due to counterparty risk and always uses stop-loss orders to manage his risk.
Brandt’s current stance appears to be a change from his previous position. While he now signals a possible bearish trend, the price of ETH has continued to rise. Currently trading at $3,500, the altcoin has seen a significant increase from its price a month ago, when it was trading below $2,900.
Godfrey BenjaminThe top head and shoulders pattern highlighted by Brandt could be a critical warning for traders and investors. If the pattern holds, Ethereum price could see a drop in the near future. However, recent market behavior suggests a complex scenario, where traditional chart patterns and market sentiment are not entirely in sync.
