In a recent development, seasoned trader Peter Brandt has reevaluated his stance on Ethereum (ETH) after considering the market implications of a Bitcoin (BTC) ETF approval.
Brandt disclosed his change of stance in a recent post on X, as ETH recaptures $2,600. The veteran analyst noted that he is known for his “strong opinions, weakly held” approach, stressing the importance of adapting trading strategies based on changing market realities.
Brandt’s Initial Rising Wedge Prediction
Brandt, who initially subscribed to the belief of a substantial rising wedge formation in Ethereum, now suggests a deviation from this anticipated pattern. Recall that he had predicted that ETH could drop to $650, as previously reported by The Crypto Basic.
Notably, the veteran trader had believed that Ethereum would be following a rising wedge pattern. A rising wedge typically features two converging trendlines, one connecting higher highs and another connecting higher lows. It signals a potential bearish reversal in the market.
This pattern suggests that while the price of the crypto asset is making higher highs and higher lows, the trading range is narrowing. Brandt held the view that Ethereum was taking this path despite the sustained bullish sentiments from other market watchers.
A Renewed Outlook
However, in his latest analysis, he admitted the inaccuracy in his assertion, stressing that the asset could be forming a running wedge instead.
The running wedge pattern usually features a corrective phase that doesn’t fully retrace to the origin of the preceding trend but rather continues the trend at a slower pace.
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This adjustment is prompted by Brandt’s consideration of the Darvas box tool. The Darvas box methodology, pioneered by Nicolas Darvas, involves delineating price ranges and identifying potential breakout signals.
Speaking on Ethereum, Brandt implied that the asset’s price movement might align with the principles of the Darvas box, leading to a running wedge pattern rather than the initially envisioned rising wedge.
Ethereum Shows Resilience
The shift in Brandt’s perspective coincides with the broader market discussion surrounding the approval of a Bitcoin ETF. The analyst called attention to the “buy the rumor, sell the news” mantra that prevails in trading circles.
With this sentiment, traders act on speculative information leading up to an event, only to witness market reversals when the actual news materializes.
Brandt anticipated this trend, expecting a “blow off top” in the market following a BTC ETF approval. This would mean a potential sharp peak followed by a significant correction.
However, following the approval of all 11 spot BTC ETFs, the market has not followed the expected trajectory. Notably, BTC soared to $48,969 yesterday before facing a drop. In addition, ETH hit a high of $2,689. Ethereum has retained most of its gains, currently trading for $2,650.
This resilience displayed by the second-largest asset has prompted Brandt’s recent change in price outlook. Nonetheless, Ethereum’s trade volume has slumped 35.8% over the last 24 hours to $19,566,470,439, but the token remains the third largest in volume, only below USDT and BTC.