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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Disclaimer: Views at The Daily Hodl do not represent investment recommendations. Investors should perform their due diligence ahead of engaging in high-risk investments in Bitcoin, cryptocurrency, or digital assets. Be mindful that your trades and transactions are at your sole risk, and any losses incurred are your accountability. The Daily Hodl is not an investment advisory service. Please note that The Daily Hodl may engage in affiliate marketing.

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