Veteran Trader Says Ether At Risk Of Bigger Drop To $1,651 As ETH Flashes Warning Signs

Ethereum (ETH) bulls should brace for a period of potential price declines in the coming weeks. At least three indicators hint at downside ahead for the market’s second-largest cryptocurrency.

Why ETH Could Fall To $1,651

According to one of the most followed technical traders in the crypto space, technical indicators suggest a short-term bearish outlook for Ether.

In an Aug. 14 post on X, Peter Brandt observed that Ethereum had completed a five-month rectangle pattern on the 4th of August, hinting at a potential downturn for the cryptocurrency. This particular pattern entailed the ETH price jumping above $2,960, creating a perfect exit position for longs.

Brandt also noted that a rising wedge pattern has emerged on Ethereum’s price chart. A rising wedge pattern involves upward-sloping trendlines that connect highs and lows and converge toward a single point called the apex. The converging nature of trendlines implies a continuous weakening of bullish momentum. Therefore, an eventual wedge breakdown, or the decisive break below the trendline connecting lows, marks a bearish development, positioning Ether for deeper price losses.

Given the confluence of these bearish technical setups, Brandt forecasted a fall to $1,651. He revealed that he had created a short position targeting this downside price point. The chart expert indicated that the bearish view would be invalidated if the ETH price soars past the $2,961 level.

“Measured risk short. Move above $2,961 and I cut and run. Target is $1,651, so trade is a 3+ to 1 risk-reward ratio. Patterns fail to deliver implications well more than 50% of the time. I am never insulted when I am wrong. In fact, my assumption on every trade is that I will take a loss.”

Solana Could Outperform Ethereum

It’s worth mentioning that Brandt recently shared a chart that suggests Ether’s top competitor Solana (SOL) is poised to outshine ETH in the coming months. 

As ZyCrypto reported, Brandt said SOL could gain 100% on ETH thanks to key differences between the two networks:

“In the battle between SOL and ETH it was inevitable there would be a clear winner. ETH: cumbersome, expensive, flawed, claims to be decentralized when it’s not. SOL: user-friendly, great foundation,” the legendary trader said recently.