Crypto Veteran Peter Brandt Sounds the Alarm: Ethereum (ETH) Faces Potential 70% Crash

• Legendary investor Peter Brandt predicts Ethereum (ETH) will fall below $1,000.
• Ethereum still has strong fundamentals for growth through spot ETF.

Crypto investment veteran Peter Brandt has sounded a gloomy alarm over the future of Ethereum (ETH). According to Peter Brandt, he has shorted the digital currency as he foresees it falling as much as 70% from its current price level. As far as Ethereum is concerned, Peter Brandt is a critic who has chosen to short the coin as he believes in its imminent price fall.

Warning his more than 707,000 followers on the X app, Peter Brandt shared a chart that marked the point where if Ethereum crosses, its freefall to $1,000 is imminent. Peter Brandt’s gloomy projection also posits that the impending Ethereum slump might also push the coin to a low of $650.

According to the legendary trader, the charts he shared are not an ultimate decider of whether or not an asset will perform well or not. While the drop below the $1,000 price level has not been recorded at any time this year, anything is possible in the crypto world. To assert his confidence that Ethereum is prime for a correction, Peter Brandt confirmed that he shorted the second-largest cryptocurrency last Friday. 

At the time of writing, Ethereum is far from losing its bullish momentum as the coin is up by 2.12% to $2,189.77 per data from Marketcap. Based on the current outlook, Ethereum has corrected its losses over the past week with the price now trading at a marginal loss of 0.08%.

As a safeguard and a caution concerning his position, Peter Brandt acknowledged that he has a protective B/E stop, likely denoting “Buy” and “Exit.”

Classical chart patterns in price charts are not sacred – they fail to perform according to the textbooks all the time

But, if the rising wedge in Ethereum $ETH complies with the script, the target is $1,000, then $650

I shorted ETH on Friday — I have a protective B/E stop pic.twitter.com/76CciT3PE5

— Peter Brandt (@PeterLBrandt) December 18, 2023

Ethereum (ETH) and the Unending Call Out from Peter Brandt

Unlike many analysts like Raoul Pal who sees Ethereum breaking new milestones in the long run, Peter Brandt is a perpetual critic of the Proof-of-Stake (PoS) protocol. He has constantly slammed the fact that the protocol is nearly unusable per its very expensive gas fee. 

He has also decried the way most traders compare Ethereum to his favorite crypto Bitcoin (BTC) as he argued in an earlier post on X that both assets do not have a comparable basis to be called stores of value.

While his past criticisms have come with little or no questioning, this latest forecast has generated a lot of questions from his followers. When the accuracy of the prediction was called out by a follower who noted that the wedge pattern presented in the chart as shown represents a bullish setup for Ethereum, Brandt shared further insights that he chooses to maintain a contrary opinion to most of crypto Twitter.

It is worth noting that Ethereum is gaining as much attention as Bitcoin with respect to spot Exchange Traded Fund (ETF) applications. Top asset managers like BlackRock and Fidelity Investments have filed for spot Ethereum ETF, a product that is approved might invalidate the bearish projection from Brandt in the short term.