Legendary dealer Peter Brandt has just lately up to date his outlook on the Ethereum (ETH) worth chart, highlighting a worrying sample. Thus, Brandt has recognized a controversial head-and-shoulders prime formation, which is often seen as a bearish indicator, suggesting that the worth might quickly fall.
This sample often alerts a reversal from a bullish development to a bearish one, typically leading to a major drop in worth.
Regardless of figuring out this bearish sample, Brandt burdened that he’s not brief on cryptocurrencies. That is significantly fascinating provided that only a month in the past, in early Could, Brandt introduced that he was formally brief on Ethereum futures.
Nonetheless, at the moment, he made it clear that he refrains from shorting the spot market as a consequence of counterparty threat and at all times makes use of stop-loss orders to handle his threat.
That is# an debatable head and shoulders prime. I do NOT brief cryptos pic.twitter.com/gjC0OPoJm3
— Peter Brandt (@PeterLBrandt) June 11, 2024
Brandt’s present stance appears to be a shift from his earlier place. Whereas he’s now signaling a possible bearish development, the worth of ETH has continued to rise. At present buying and selling at $3,500, the altcoin has seen a major improve from its worth a month in the past, when it was buying and selling at lower than $2,900.
The pinnacle and shoulders prime sample highlighted by Brandt may very well be a essential warning for merchants and traders. If the sample holds true, the worth of Ethereum may face a downturn within the close to future. Nonetheless, the market’s current conduct suggests a posh situation, the place conventional chart patterns and market sentiment aren’t totally in tune.
