Savvy commodity trader Peter Brandt, who has been in the trading business for almost four decades, has taken to Twitter to show a Head and Shoulders pattern forming on an Ethereum chart.
In his tweet, he warns that he is not a crypto hater; he just pointed to the formation of this pattern for the second-largest crypto.
Bearish pattern forming for Ethereum, log target: $2,276
Seasoned trader Brandt has shared a screenshot with an H&S pattern coming up on an ETH chart. This is a price reversal pattern; thus Brandt is hinting that the exchange rate of the native coin of the Ethereum platform may decline further in the future.
However, the trader made a disclaimer, saying that while he does not necessarily believe in the possibility of an ETH dump, he is not shorting ETH. He is not a crypto hater, he tweeted. Still, he said, if you own Ethereum you have to deal with the existence of this bearish formation on the Ether chart.
Earlier this year, Peter Brandt tweeted that he expects Ethereum to significantly outperform Bitcoin in the future.
In a comment under this tweet, Brandt states that the chance that this H&S pattern will work is a "big if." The log target in this case would be $2,276.
Ethereum loses 18% in the past week
Over the past week, from September 16 to now, the second-largest cryptocurrency, Ether, has lost almost 18% of its market value; it has dropped from a four-month peak of $3,674 to $2,877 earlier today.
By now, ETH has recovered the $3,000 level and, at press time, is changing hands at $3,047.
The Ethereum price has been on the rise since August 5, the day on which the long-anticipated London hard fork was implemented and allowed to burn some of the ETH fees. As this hard fork launched, it was yet another step toward the implementation of the Ethereum 2.0 upgrade and switching to the Proof-of-Stake consensus algorithm as well.
Ethereum drops, following Bitcoin
Ethereum has been following the flagship cryptocurrency, Bitcoin, in its present correction. Since Sept. 20, BTC has declined over 14%, hitting the $40,150 area and taking the whole crypto market down along with it. By now, BTC has restored to the $43,133 mark.
As reported by U.Today, on Sept. 20, the Bitcoin price suffered a major blow from the situation on the real estate market in China. Evergrande Real Estate Group, the second-largest company in this industry in China, saw its stock price drop by nearly 30% over its debts, worth almost $2 trillion.
This struck Hong Kong's Hang Seng index down substantially and hit global markets, including the cryptocurrency market.