Old school trading expert believes Ethereum could go down further if this pattern is not terminated immediately
Seasoned commodity trader Peter Brandt, who has been trading since the 1970s, has taken to Twitter to share another classical chart. This time around, it is related to the second largest cryptocurrency, Ethereum.
“possible descending triangle”
Peter Brandt has shared an Ethereum chart with a pattern on it, which he warned – could only be a descending triangle. He explained that this is a negative pattern and, while it should not dissolve immediately, “it would not be constructive.”
A descending triangle usually means that downside momentum is increasing and the price of the asset is likely to break to a downside soon.
Classical Charting 101
This is a possible descending triangle. A negative completion, unless immediately revoked, would not be constructive.$ETHUSD pic.twitter.com/33kOZK4tjF
— Peter Brandt (@PeterLBrandt) 7 June 2022
Major correction predicted for ETH
Earlier in March this year, the veteran chartist tweeted that he expected a major correction to hit Ethereum, which was trading in the $2,900 area at the time.
So far, the second largest crypto has fallen to the level of $1,700. ETH began to decline after bitcoin, when, in the first days of May, the Fed implemented a historic interest rate hike, followed by the collapse of the Terra blockchain as well as its coins—the Luna and UST stablecoins.
$666 million in ETH shorts liquidated
Yesterday, Ethereum attempted a move from $1,810 to over $1,900, and the market saw a staggering liquidation of around $666 million in ETH short trades. The majority of those liquidated trades were placed on the Bitfinex exchange.
However, so far, ETH has declined even below the level it started with and is exchanging hands near $1,700.