Seasoned analyst and trader Peter Brandt is issuing a warning to Ethereum (ETH) traders, saying that the leading smart contract platform will lose ground against its top challenger.
The longtime market strategist tells his 610,400 Twitter followers that he’s bearish on Ethereum from both the technical and fundamental perspectives.
“Ethereum ETH is in a bear trend because it is an overly complicated/expensive/awkward platform to the NFT (non fungible token)/specialty token universe/metaverse.”
Looking at Brandt’s chart, Ethereum appears to have taken out two crucial support levels within a triangle structure, indicating the strength of the sell-off.
The crypto analyst is also looking at the performance of Ethereum against its top rival Solana (SOL). According to Brandt, Ethereum has been losing value against Solana ever since the (ETHUSD/SOLUSD) pair broke down from a head and shoulders pattern in March 2021.
“In fact, ETH’s bear trend against SOL is completely warranted. NFT nerds, please excuse me if I did not use the ‘correct’ terminology.”
As for Bitcoin, Brandt is also bearish on the leading cryptocurrency as he says BTC is no longer trading within a parabola.
“I saw the violation of the parabolic advance and commented on it in real-time to members of BitcoinLive in real-time, but in hindsight, I might not have taken the event seriously enough.
While Brandt previously noted that parabolic violations tend to lead to 80% drawdowns, he also suggests that BTC’s era of parabolic rallies may have come to an end.
“Some view predictions as a ‘one-and-done’ event. I am a student of Bayesian probability. Predictions and analysis must always morph relative to the events of the time. When circumstances change, predictions must change. The parabola might not be the driving force in BTC.”
In 2019, Brandt predicted that Bitcoin may have entered its fourth parabolic phase.
“Possibility that BTC has entered [its] fourth parabolic phase.”
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Featured Image: Shutterstock/Paul Fleet