Peter Brandt, a crypto analyst on X, has highlighted a potentially bearish trend for Ethereum (ETH), suggesting further declines could be on the horizon. Ethereum’s future hinges on factors like the approval and trading of spot ETFs, with analysts optimistic about a potential price rebound if approvals are granted.
Read CRYPTONEWSLAND onEthereum’s recent performance has been underwhelming according to on-chain metrics. At the time of writing, Ethereum is trading at $3,509.31, down 4.66% amid a broader market downturn. Over the past week, the cryptocurrency has seen a 6.81% decrease. However, despite these recent setbacks, Ethereum has experienced a 20% surge over the past month.
Brandt shared a chart indicating a possible head and shoulders pattern on Ethereum’s monthly chart. This pattern, characterized by three peaks with the middle peak being the highest, often signals a transition from a bullish to a bearish trend. If this pattern holds, Ethereum could experience further declines.
In the past month, Ethereum’s lowest price was $2,863.54, according to CoinMarketCap. Should the trend reversal predicted by Brandt occur, the $3,000 and $2,800 levels could serve as significant support zones.
Despite recent market challenges, Ethereum faces additional concerns. Although the U.S. Securities and Exchange Commission (SEC) has approved spot Ethereum ETFs, trading for these products has not yet begun. While the approval removes one regulatory hurdle, liquidity concerns remain. With spot Bitcoin ETFs already attracting substantial inflows, there is uncertainty about whether Ethereum can capture a similar market share.
The recent decline in Ethereum’s price is part of broader market dynamics that could mark a significant period in the cryptocurrency’s history. Market analysts are optimistic that at least one spot Ethereum ETF issuer will receive feedback on S-1 registrations this week. Although details of these negotiations are not publicly known, successful approvals could lead to a significant price rebound for Ethereum.
Despite his bearish outlook, Brandt has clarified that he does not short cryptocurrencies, reducing his risk if Ethereum’s price unexpectedly rises. Ethereum’s performance will be closely watched by investors and analysts.
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