According to the well-known trader Peter Brandt, the price of ETH could even fall to $2,000.
I am NOT saying I believe it and I am saying I am not shorting it — but like it or not if you own $ETH you will have to deal with it. This possible H&S exists, whether it is completed, fails or morphs, it exists. I am NOT a hater. pic.twitter.com/PG50GwaZkI
— Peter Brandt (@PeterLBrandt) September 20, 2021
In reality, this is not a prediction, as he specifies that he does not necessarily believe in this hypothesis, but it is nevertheless an analysis that he invites people to make.
A new bullish trend reversal
This is a possible H&S (i.e. Head and Shoulders) pattern that could either be completed, with the descent to $2,000, fail or transform.
Brandt also makes it clear that he is not an Ethereum hater.
The H&S pattern is a formation on price charts that appears as a baseline with three peaks that predicts a reversal from bullish to bearish, signalling that an uptrend is nearing its end.
It is often considered one of the most reliable trend reversal patterns, which is why Brandt encourages people to consider it even if he doesn’t necessarily think it is correct.
The baseline of this pattern on the ETH price would be just below $3,000, which is very close to the current price, while the peak would be around $4,000 touched at the beginning of the month.
If this were truly an H&S pattern then the minimum peak would be around $2,000.
Brandt also highlights the approximately $1,700 that was touched twice, at the end of June and the end of July, with the head touched at the beginning of September at $4,000, and the two shoulders touched in mid-August and mid-September between $3,300 and $3,600.
The descending line and Peter Brandt graphical hypothesis on ETH
This formation could signal that the bullish trend triggered between late July and early August could be interrupted, and in the coming days, it could reverse and become descending.
If the price were to actually fall to $2,000, it would be a loss of more than 30% in value, and a return to late July values.
Brandt does not say how likely or unlikely this scenario is, but merely points out that a head and shoulders pattern seems to have formed on the chart.
ETH’s all-time high was reached on 12 May at over $4,300, not far from the $4,000 of a couple of weeks ago.
It is worth noting that ETH’s dominance has also dropped in recent days, falling below 18% for the first time since late August. The peak in recent times for this metric was reached at the end of August, with over 19.5%, which is more or less the same level touched at the time of the ATH in May.