TL;DR:
- Veteran trader Peter Brandt identifies high-risk patterns on the weekly charts for Ethereum and global market capitalization.
- A symmetrical triangle in ETH suggests a downward resolution that could break critical institutional support zones.
- The total market faces a megaphone pattern threatening a haircut of up to 20% from current valuations.
Veteran commodities trader Peter Brandt has shared insights that are sending shockwaves through the digital asset market. His analysis has sounded the alarm by presenting projections that could shake the confidence of even the most optimistic investors in the short term.
These revelations emerge amidst a backdrop of weakness for the pioneer cryptocurrency, which recently lost the psychological $85,000 level. Brandt stated that current formations in price charts do not offer a promising outlook for those betting on the continuity of the bullish cycle.
In the specific case of Ethereum, the trader highlights the formation of a massive symmetrical triangle that has been coiling for months. This technical figure, which is typically neutral, appears to be resolving to the downside, which would force a massive liquidation of long positions.
Patterns Threatening Crypto Market Stability
For this negative trend to be confirmed, Ethereum would need to close a weekly candle below the triangle’s lower trendline. Should this scenario unfold, the world’s second-largest cryptocurrency could seek much deeper support levels than previously anticipated.
On the other hand, the analysis of the total market cap reveals a “right-angled broadening” pattern, similar to a flat-bottomed megaphone. This structure is concerning because it shows constant selling pressure on a horizontal support line that is on the verge of giving way.
If the market fails to hold this level, the total capitalization could plummet toward $2.41 trillion at an accelerated pace. This would represent an adjustment of between 15% and 20%, wiping out a large portion of the gains accumulated during recent weeks of euphoria.
In summary, Brandt’s revelations suggest the market is at a critical turning point where proceeding with caution will be essential. Traders must closely monitor weekly closes to confirm whether these technical figures validate as signals of a major correction.
