Ethereum Price Could Crash Significantly According to Crypto Expert

Ethereum's price has risen 25% from its low of $2,112 on August 5, but veteran trader Peter Brandt is predicting a potential drop to around $1,650.

Brandt’s forecast follows a period of increased value for Ethereum, which saw a 13% rise over the past week. Despite this, experts are cautious about future performance. Arete Capital’s McKenna doubts Ethereum will break through the $2,800-$2,900 range in August and September, noting recent resistance at $2,800.

I don’t really expect $ETH to break above $2800-2900 but rather remain range bound for August and some of September.

There has been a substancial mean reversion but now price is trading close to supply. Not somewhere I would have high conviction being directly long.

But… pic.twitter.com/2RhKcXpX50

— McKenna (@Crypto_McKenna) August 14, 2024

Brandt identifies two scenarios based on chart patterns: the first suggests a potential exit if Ethereum exceeds $2,960, while the second indicates a likely decline to $1,650 if the rising wedge pattern holds. He notes that Ethereum recently dropped below the lower boundary of a key pattern, and is now retesting this level.

Brandt’s analysis includes a rising wedge pattern on shorter timeframes, which typically signals a downturn. He has initiated a short position targeting $1,651 and plans to exit if the price exceeds $2,961.

Recent data from Glassnode shows that while Ethereum’s funding rates have been positive in 2024, a recent price drop has led to a decrease in these rates, reflecting a shift in market sentiment towards bearishness.