Renowned trader Peter Brandt has recently entered a long position in Ethereum, setting a target price of $4,032. Brandt, known for his expertise in classical charting techniques, has identified a descending wedge pattern in Ethereum, indicating a potential bullish breakout. The breakout has already been confirmed by a significant increase in price above the upper trendline of the wedge. Brandt entered the trade at $2,741 and is confident in Ethereum’s continued rise.
In addition to his Ethereum trade, Brandt has diversified his portfolio with three other strategic positions. He has gone long on Soybean Meal futures, SPDR Gold Trust, and Silver futures, all based on his classical charting techniques and aiming to capitalize on anticipated breakout movements.
It is worth noting that Brandt previously predicted a severe downturn for Ethereum in December, suggesting a potential drop below $700. While classical chart patterns are not infallible, Brandt’s current bullish stance reflects his confidence in Ethereum’s upward momentum.
On the weekly chart, Ethereum is exhibiting a symmetrical triangle pattern, characterized by lower highs and higher lows. The descending resistance line, drawn from the all-time high of $4,868.8, forms the upper boundary of this long-term descending triangle pattern. The ascending support line, extending from the 2018 low, delineates the lower boundary and creates a significant structural formation on the price chart.
In a bullish scenario, a successful break above the descending resistance line and the 0.786 Fibonacci level around $3,900 could potentially lead to a new all-time high near $4,868.8. On the other hand, a bearish scenario would unfold if Ethereum fails to overcome the resistance and drops below the 0.618 level, potentially retesting lower support levels, including the crucial ascending support line.
Please note that this article provides informational content and should not be considered financial advice. The author’s opinions expressed in this article do not reflect the views of The Crypto Basic. Readers are encouraged to conduct their own research before making any investment decisions, and The Crypto Basic is not responsible for any financial losses incurred.