Peter Brandt Spots Ethereum Heads and Shoulders Pattern, What Next?

Legendary trader Peter Brandt has once again shone the spotlight on Ethereum (ETH) with what seem like another prospective bearish call for the coin.

More Ethereum Drawdown In View?

Ethereum is currently not in a good place per on-chain metrics. At the time of writing, the coin is down by 3.96% to $3,520.37 on a broader market slip. In the past week, the losses has further extended to 6.81% with only the past month maintaining its relative luster for the month with a 20% surge.

In a chart shared by Peter Brandt, he noted that the monthly chart depicts an arguable heads and shoulders top pattern. For context, the heads and shoulders pattern is an indicator that defines a switch from a bullish to a bearish pattern. This technical setup comes with three tops with the middle taller than the others.

This is# an arguable head and shoulders top. I do NOT short cryptos pic.twitter.com/gjC0OPoJm3

— Peter Brandt (@PeterLBrandt) June 11, 2024

Spotting this trend, Peter Brandt is suggesting that beyond the currently bearish slump, Ethereum could fall much lower in the near term. It is worth noting that over the past month, the lowest that ETH has fallen to is per data from CoinMarketCap is $2,863.54.

Should the trend reversal spotted by Peter Brandt come to pass, the $3,000 and $2,800 price marks will form the major support zones to watch. While this is a concern to note, Ethereum has more pressing worries at the moment. Despite the approval of spot Ethereum ETF by the US SEC, the trading for the products has not commenced.

The coast is already clear with the approval, however, concerns on liquidity grab remains on the horizon. With Spot Bitcoin ETF already taking over with billions in net inflow, question on whether Ethereum can cup a share remains on the horizon.

What Comes Next for the Coin

The bearish slip in Ethereum over the past week is a micro factor in what might prove to be a change changing era in the coin’s history.

Already, there are indications that at least one spot Ethereum ETF issuer might get a feedback on S-1 registrations this week. While the behind-the-scenes negotiations remains obscure, market analysts are optimistic on these S-1 approvals moving forward.

Should the bullish projections become a reality, Ethereum might see a massive rebound in price, against the unspoken expectations of Peter Brandt. Though Brandt has always been skeptical of Ether, he said in his latest post on X that he does not short crypto. This places him at a little risk advantage just incase Ethereum pulls an unexpected twist.

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