Experienced trader has something to say about this Ethereum trade
One of the most experienced traders in the cryptocurrency industry, Peter Brandt, shared a successful Ethereum trade carried out by Tuor Demeester, editor of Satoshi Papers. Trading was mostly based on technical analysis and can provide us with forecasts for the future.
Setup
At the end of July, Ethereum entered a rising wedge pattern, in which it moved for more than a month. Considering the general trend on the asset, the expert assumed that the ascending wedge would end with a downward volatility spike, which was indeed the case after the bearish driver appeared on the market.
The breaking of the lower boundary of the wedge sent Ethereum to the $1,400 price range, bringing traders back to the July range.
Brandt’s reaction
Usually, experienced traders avoid short positions on the market as they bring significantly larger risks to traders’ portfolios and should not be opened without the proper risk management that would include certain take-profit and stop-loss values.
Thankfully, Demeester used all the same rules when shorting an asset, which allowed him to close out his position at the right time, which Brandt noted.
What’s next for Ethereum?
With the dropout from the ascending wedge, Ethereum returns to the downtrend it has been moving in since November 2021. The continuation of the bearish trend is most likely unquestionable until the Merge update goes live.
Unfortunately, on-chain data shows that investors are not interested in the big update and don’t expect anything from it. Big wallet activity returned to an anemic level, and the network’s revenue is still at pre-Bulleran levels.
At press time, Ethereum is changing hands at $1,586 with a 2.2% price increase in the last 24 hours.
