A closely followed veteran crypto trader thinks Ethereum (ETH) could drop lower to $1,268 before rebounding back up.
Peter Brand tells his 647,800 Twitter followers ETH may be in a descending triangle, a pattern indicative of further downside risk for the second-largest cryptocurrency by market capitalization.
Brandt first mentioned the possible descending triangle last week, saying ETH looked “like a good prospect for a measured risk short trade.”
On Monday, the trader shared a chart including a price target of $1,268 if ETH’s support of $1,700 gets taken out.
Source: Peter Brandt/ Twitter
Ethereum is trading for $1,826 at time of writing, down more than 1% in the past 24 hours.
Not all traders are quite as bearish. Popular crypto analyst Justin Bennett tells his 101,000 Twitter followers that traders should pay attention to an ETH trend line from November.
“A daily close above would open up higher levels like $2,150 and $2,350. $1,700 is support. Below that is the prior cycle peak around $1,400.”
Source: Justin Bennett/ Twitter
Ki Young Ju, chief executive of on-chain insights platform CryptoQuant, notes Ethereum’s ecosystem is still growing.
“Supply distribution differs from the 2019 bear market. Half of the supply is staked in DeFi [decentralized finance], ETH 2.0, etc. It reminds me that ETH had nothing but ICO [initial coin offering] back in 2019. I’m glad now people talk about fundamentals.”
Source: Ki Young Ju/ Twitter