Veteran Trader Peter Brandt Shorts Ethereum, Predicts Price Drop

In a recent development, veteran trader Peter Brandt has made waves in the cryptocurrency world by announcing his short position on Ethereum (ETH). Peter Brandt, a seasoned trader with decades of experience, shared his trading strategy with over 707,000 followers on the social media platform X (formerly known as Twitter).

Ethereum's Surging Value and Key Factors

Since the start of 2023, Ethereum has seen its value rise by an impressive 85% when compared to the U.S. dollar. This remarkable increase in the price of Ethereum can be attributed to several significant factors. One major catalyst has been the buzz in the crypto community about the potential approval of a spot Ethereum exchange-traded fund (ETF) by the U.S. Securities and Exchange Commission (SEC). This has ignited a bullish sentiment in the market. Additionally, on-chain analytics have indicated a noteworthy increase in ETH accumulation by major holders, often referred to as 'whales,' which suggests a positive shift in market dynamics.

However, over the past two weeks, Ethereum's upward trajectory has shown signs of slowing down, with a minor 1.4% dip in its value against the U.S. dollar. On December 18, 2023, Peter Brandt, an active trader since 1975, shared an ETH/USD chart from Tradingview. Brandt made it clear that classical chart patterns in price charts are not infallible, stating, “But, if the rising wedge in Ethereum complies with the script, the target is $1,000, then $650.”

Peter Brandt also mentioned, “I shorted ETH on Friday — I have a protective break-even stop.” Shorting in financial markets involves making a bet against the asset, in this case, Ethereum, and anticipating a decline in its value, which can result in profit from the short position. Other prominent figures in the crypto space, like Adamant Capital founder Tuur Demeester and Colin Talks Crypto, have echoed Brandt's sentiments, with Tuur Demeester pointing to a chart illustrating ETH's performance against Bitcoin (BTC) over the past five years.

Analyzing the Ethereum Chart

While the Ethereum (ETH) chart displays indications of a potential reversal, it's important to note that the pattern in Brandt's chart has not fully developed yet. Currently, there's a noticeable bearish pattern characterized by consistently flat lower highs and a series of lower lows, indicating that sellers are currently dominating the market. However, it's not uncommon for cryptocurrencies to experience periods of low trading volume during holidays, which bears may take advantage of. Therefore, it's plausible that Ethereum's descending triangle formation might be a temporary occurrence.

Peter Brandt's Perspective on Crypto Assets and Economic Matters

Peter Brandt has been known for his outspoken views on cryptocurrency assets and economic issues. In August, he referred to the upcoming Bitcoin halving as a “non-event.” In June, he advocated for the U.S. Federal Reserve to raise the benchmark interest rate by 100 basis points. Brandt also holds the belief that Bitcoin (BTC) is a legacy cryptocurrency while dismissing most other cryptocurrencies as “make-believe crypto imitators.”