Analyst Raises Alarm on Ethereum, Predicts Potential Downturn for ETH with Specific Price Targets

An esteemed cryptocurrency market expert has highlighted a chart pattern that suggests Ethereum (ETH) might be heading towards a downturn.

Market analyst, Ali Martinez, has informed his audience of 69,400 on a well-known social network that ETH may be developing a rising wedge pattern. This chart formation is generally regarded as a precursor to a bearish trend, suggesting the possibility of a decline following an upwards rally.

According to Martinez, if such a downturn occurs, it could lead Ethereum’s price to retreat to around $2,350. However, he clarifies that if ETH manages to secure a close above $2,800, the bearish scenario may likely be invalidated.

At the moment of publication, Ethereum’s market price stands at $2,567. The crypto holds the second spot in terms of market capitalization and has witnessed a slump of over 4% within the previous 24 hours and close to a 3% decline over the past week.

Echoing Martinez’s insights on ETH’s rising wedge is veteran trader Peter Brandt, who previously predicted that the formation could send Ethereum tumbling below the $2,000 level.

“I post this chart analysis not to disparage ETH—despite not being a proponent—but rather to elucidate my trading strategies. Hence, enthusiasts mustn’t take offense. I’m equally likely to take a long position on a favorable pattern as I am to go short on a compelling one.

1. A five-month rectangular pattern, which I favor, was confirmed on August 4th.

2. On August 14th, we saw a retest of the breakout line.

3. A rising wedge is appearing on the intraday chart.

I’m eyeing a short with assessed risk. Should the price breach above $2,961, I’ll abandon the position. The target confronts the $1,651 mark, fostering a risk-reward ratio above three-to-one. Moreover, patterns frequently fail to achieve their implied outcomes; hence, I always brace for a potential loss with every trade I enter.”

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