Trading expert, Peter L. Brandt, a sharp drop in the price of Ethereum (ETH), as it sees the price falling to $1651, a level it has not reached since October 2023.
According to Brandt, Ethereum is currently trading at $2,627, which means that the expected decline will reach 36% of its current value. Brandt points out that Ethereum has been trading in a rectangular pattern since April, also known as the horizontal channel. This pattern occurs when the price of an asset fluctuates within a certain range for a period of time, with the upper line of the channel forming the resistance level, while the lower line forming the support level. In the case of Ethereum, resistance was at $4,000, and support around $2,814.
The volatility phase of Ethereum ended on August 4 when the price fell below the lower line of the rectangular pattern. The asset usually retests the breakout level after exiting the oscillation pattern to determine whether this level will act as support or resistance. According to Brandt, Ethereum is currently retesting the breakout level to assess whether the price will hold up or fail.
The expert also pointed to an ascending wedge pattern on the intraday chart, where this pattern is formed when the price achieves higher highs and lows sequentially, but the gap between them narrows, creating a wedge shape. This pattern is usually considered a bearish signal indicating the possibility of a trend reversal.
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