Old-school trading expert believes Ethereum may go further down if this pattern is not nullified immediately
Veteran commodities trader Peter Brandt, who has been trading since the 1970s, took to Twitter to share another classic chart. This time it is tied 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 possibly be a descending triangle. He explained that this is a downside pattern and, should it not dissolve immediately, “it would not be constructive.”
A descending triangle usually means that bearish momentum is developing and the price of an asset is likely to fall soon.
Major correction for ETH predicted
In early March this year, the seasoned chartist tweeted that he expected a major correction to hit Ethereum, which was trading in the $2,900 zone back then.
To date, the second-largest crypto has plunged to the $1,700 level. ETH began to fall after Bitcoin when in the early days of May the Fed implemented a historic interest rate hike, then this was followed by the collapse of the Terra blockchain with its coins – LUNA and UST stablecoin.
$666 million in ETH shorts liquidated
Yesterday, Ethereum attempted to rise from $1,810 to over $1,900, and the market witnessed a staggering liquidation of ETH short trades worth approximately $666 million. The majority of those liquidated trades were placed on Bitfinex exchange.
However, as of today, ETH has fallen even lower than the starting level and is trading hands near $1,700.
