Ethereum has so far witnessed intensified attention from the crypto community following the swirling reports of the likely launch of Ethereum spot exchange-traded-funds (ETFs) next week.
Of those giving the asset increasing attention is Peter Brandt, a veteran trader who has recently shared exciting insights into Ethereum’s price action.
Renowned for his decades-long track record in financial markets, the veteran trader has provided Ethereum’s highly optimistic technical analysis. Through his analysis of Ethereum’s price movements, Brandt predicts a potential surge that could redefine ETH’s current market standing.
$5600 On The Horizon Based On This
Brandt’s projections are based on recently discovered a “four-month rectangle” on the Ethereum price chart. This pattern indicates a consolidation phase, where Ethereum has fluctuated within a stable price range.
According to Brandt, such consolidation might be the calm before a significant upward breakout. This view provides investors with hope, and it is also consistent with general sentiment confirming that periods in which the price remains stable usually precede a bullish reversal.
Delving deeper into the technical aspects, Brandt pointed to the “horn bottom.” This formation on the chart can be seen as a bullish reversal pattern indicating that ETH has always remained above critical support levels, regardless of how often it has tested lower limits.
This horn bottom pattern is also associated with increasing buying pressure, indicating a rally may occur shortly. Brandt further substantiated his analysis by sharing a chart with his followers on X, detailing the technical patterns and setting a bold price target for Ethereum that exceeds $5,600.
A perspective on $ETH
Support was found at lower boundary of 4+ month rectangle, which was a retest of the Feb completion of a horn bottom
Target, pending upside completion, is 5600+ pic.twitter.com/EThcM61KpW— Peter Brandt (@PeterLBrandt) July 15, 2024
This projection is based on the premise that if Ethereum can effectively breach the upper boundary of the rectangle pattern, it could trigger a significant price rally.
Ethereum Market Performance
While Brandt has shared quite an optimistic projection of ETH rallying above $5,500, the asset still struggles below the $4,000 mark. ETH trades for $3,462 at the time of writing, up by 2.4% in the past 24 hours.
The current market performance comes against the backdrop of the overall crypto market downturn and the circulating news of the likely launch of spot ETH ETFs by Tuesday next week. Eric Balchunas, a senior ETF analyst at Bloomberg, noted:
[H]earing SEC finally gotten back to issuers today, asking them to return FINAL S-1s on Wed (incl fees) and then request effectiveness on Monday after close for a TUESDAY 7/23 LAUNCH. This is provided no unforeseeable last min issues of course
Featured image created with DALL-E, Chart from TradingView