Ethereum (ETH) Price Prediction: Trader Peter L. Brandt Forecasts a 36% Drop to $1651

Trading veteran Peter L. Brandt has shared a bold forecast for leading altcoin, Ethereum (ETH). In a post on X, Brandt notes that the altcoin's price will plummet to $1651

Cryptocurrency market veteran Peter L. Brandt has shared his latest analysis for Ethereum (ETH), predicting a significant drop in the altcoin’s price.

According to Brandt, ETH is likely to decline to $1,651, a level it last traded at in October 2023. At press time, ETH is valued at $2,627. A decrease to $1,651 would indicate a 36% drop from its current price.

The renowned trader’s analysis suggests that ETH has been trading within a rectangle pattern since April. This formation, also known as a horizontal channel, occurs when an asset’s price consolidates within a specific range over a period of time.

In ETH’s case, the upper line of the rectangle serves as resistance, while the lower line provides support. When the altcoin traded within the rectangle, it encountered resistance at $4,000 and support around $2,814.

However, this consolidation phase ended on August 4, when ETH breached the lower line of the rectangle pattern. After an asset breaks out of a consolidation pattern, it usually retests the breakout level to determine whether it will act as support or resistance.

At ETH’s current price, Brandt highlights that the altcoin is now retesting this breakout level to assess whether the price will hold or fail.

Furthermore, on an intraday chart, the market veteran also identifies a rising wedge pattern. This pattern forms when an asset’s price consistently makes higher highs and higher lows, but the gap between them narrows, creating a wedge shape.

Typically considered a bearish signal, this pattern suggests a potential downside reversal.

The implication is that the coin will fail to breach its breakout level, and its price will trend further downward.

Based on this analysis, Brandt reveals that he has taken a short position with a target of $1,651. This position offers a 3:1 risk-to-reward ratio.

However, recognizing the need for caution, he said that he would set a stop loss at $2,961, and if ETH’s price trades above this level, he would exit the trade.

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