Over the past month, Ethereum (ETH) has exhibited a price range between $2,100 and $2,400 amidst the anticipation of a potential spot Bitcoin ETF approval.
Despite being hopeful about the prospects of long-term benefits for the crypto ecosystem, investors have grappled with divergent opinions on whether this event could trigger a bullish or bearish short-term scenario.
Brandt’s Bearish Outlook
Renowned trader Peter Brandt, however, remains unmoved by the fundamental factors driving the market sentiment. On Tuesday, he reiterated his bearish stance on ETH, grounding his analysis on technical chart patterns.
Brandt took to Twitter to express his viewpoint, stating, “I know in advance that this Tweet will land like an egg dropped onto a pile of scrap metal. My bias remains to be short $ETH. I’m a swing trader in ETH, not a hodler.”
Brandt emphasized his reliance on chart patterns for analysis and highlighted a rising wedge pattern, contrary to some who interpret it as an ascending triangle.
For context, the rising wedge serves as a predictive tool for potential bearish reversals. This formation is characterized by a diminishing price range featuring ascending peaks and ascending troughs, all encapsulated by upward-sloping trendlines.
Notably, last month, the legendary trader Peter Brandt reiterated his bearish sentiment by shorting Ethereum with a target price range between $650 and $1,000. Brandt has expressed concerns about Ethereum’s usability issues, citing higher fees and slow transaction speeds. He even speculates that Ethereum may not remain a listed asset in the next decade, favouring alternatives like Solana.
Elsewhere, seasoned market analyst Aksel Kibar pointed out the well-defined consolidation between $2,143 and $2,410, emphasizing the importance of a decisive move beyond $2,410 with daily solid candles for a long-term bullish thesis.
Daniel Yan, co-founder at Matrixport, a Singapore-based crypto management firm, highlighted Ethereum’s recent rally but cautioned about the resistance zone between $2,400 and $2,500. He noted the necessity for weekly closes above $2,425 and $2,525 for a clear breakout.
Despite Brandt’s scepticism, the upcoming Dencun Upgrade, incorporating Proto-Danksharding to enhance scalability, could be a game-changer for Ethereum. Scheduled for later in the year, this upgrade aims to boost the capabilities of layer-2 scaling solutions, potentially aligning Ethereum with its long-term objectives.
Crypto analyst Nilesh Rohilla suggested that whatever the ETH chart indicates, the upcoming upgrade and speculation regarding an ETH spot ETF could propel the Ethereum price to $3,000-$3,500 within the next four months.
In a market driven by technical analysis and contrasting opinions, Ethereum’s future trajectory remains uncertain, with traders closely monitoring both fundamental developments and chart patterns.
At press time, ETH was trading at $2,421 after a 6.92% surge over the past 24 hours, according to CoinMarketCap data.