The seasoned trader who nailed Bitcoin’s more than 80% drop during the 2018 bear market is warning Ethereum investors that ETH could see a massive 70% devaluation from current prices.
Peter Brandt tells his 661,800 Twitter followers that leading smart contract platform Ethereum has broken down from a head and shoulders formation and could now be en route to the pattern’s classical charting target.
“The chart suggests a target of $300. Targets are not sacred – sometimes they are hit, sometimes not, sometimes exceeded. But for now, I would not buy ETH with my enemy’s money ETH.”
Earlier this month while Ethereum was trading above $1,700, Brandt noted that Ethereum may be trading in a descending triangle pattern and could drop to his target at $1,268. The veteran trader recently updated his analysis after his initial target was met.
“ETH/USD has met its first downside target. As a swing trader, my practice is to take profits at target levels. I have no desire to catch highs or lows, but am satisfied catching chunks in the middle.”
At time of writing, Ethereum is changing hands for $1,066, up nearly 20% from its 2022 low of $897.
As for Bitcoin, Brandt says that he still believes in the long-term potential of BTC.
“For the record, I’m [a] long-term BTC bull. [I] believe [in the] narrative. From [the] beginning, I’ve thought laser-eyed HODL-forever love affair is lunatic. Any market that’s had four 80% plus drawdowns in 12 years is NOT an investment, but pure speculation. Marry a spouse, not a coin. Crypto is a bad religion.”
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/Chawalit Banpot/monkographic