Legendary trader Peter Brandt recently devoted time to school Ethereum (ETH) proponents on charting skills as he makes an effort to water down the coin’s strides.
Taking to his official account on X, Peter Brandt said what many call the Ascending Triangle in Ethereum’s price is technically incorrect. Using his charting experience, Peter Brandt pointed out reasons why he believes the pattern in Ethereum is not an ascending triangle.
An ascending Triangle is a bullish chart formation that generally depicts an uptrend that is imminent in consonance with rising volume. Whenever the price breaks about the upper horizontal line, the asset may continue its ascent unless bigger market forces impact the trend.
Peter Brandt’s Thesis
According to the trader, the correct starting point for the Ethereum pattern was August 2022 and not April 2022 when the coin touched a local high. In reality, Peter Brandt labeled the April 2022 price action as one that is part of a preceding bear trend.
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Insight into charting
Many youngstas in noobersville have insisted that the pattern in $ETH is an ascending triangle
It is not so.
The correct starting point for this pattern was Aug 2022 high, NOT Apr 2022 high. Apr '22 price action was part of preceding bear trend pic.twitter.com/yFvPj2ul3n— Peter Brandt (@PeterLBrandt) December 28, 2023
Looking at the all-time Ethereum chart, this latter statement is correct as the $3,522.36 price high gained in April 2022 comes as the coin receded from the All-Time High (ATH) of $4,891.70 in November 2021.
Peter Brandt clarified that Ascending Triangles have horizontal upper boundaries as defined earlier. When zoomed out, the April 2023 high is $120 higher than the August 2022 that many people failed to acknowledge as the starting point in the ascending triangle pattern plot.
Nonetheless, Brandt acknowledged that this charting mode matters a little as the “measuring implications for determining targets are roughly the same for an asc tri and running wedge.”
He concluded by noting that in the end “beauty can be in the eye of the beholder,” underscoring how different traders can interpret data differently.
The Unending Ethereum Criticism
Peter Brandt has made headlines on more than one occasion for calling out Ethereum as an asset that is destined to fall. Notably, Peter Brandt acknowledged recently that he shorted ETH as he believed it could fall below the $1000 price level, and likely to $650.
As part of his bearish projections on Ethereum, the legendary trader is convinced the second-largest digital currency may not be a listed asset in the next 10 years, owing to its high gas fees.