Veteran Trader Peter Brandt Issues Bearish Charts for ETH and Crypto Market Cap
Veteran commodities trader Peter Brandt warned traders after posting two bearish charts: a symmetrical triangle on Ethereum (ETH/USD) weekly and a right‑angled broadening (megaphone) pattern on the total cryptocurrency market capitalization. Brandt noted that ETH is coiling in a large symmetrical triangle — a neutral pattern until a confirmed breakout — but signaled that the coil may resolve downward; a weekly close below the triangle’s lower trendline would confirm a bearish breakdown and risk pushing ETH below key support zones. The second chart shows a right‑angled broadening wedge on total crypto market cap, with a horizontal support under heavy pressure and an ascending resistance line; Brandt suggested a plausible drop toward roughly $2.41 trillion market cap, implying a 15–20% decline from current levels. The alerts come amid a sharp Bitcoin selloff, with BTC dipping below $85,000 the same day. Traders should monitor weekly closes for ETH’s triangle and the total cap’s horizontal support — confirmed breakdowns would increase short-term downside risk across crypto markets.
Bearish
Brandt’s charts highlight two technical structures that historically precede downside moves when confirmed: a symmetrical triangle that, if broken to the downside on a weekly close, often leads to accelerated selling as stop-losses and trend-following strategies trigger; and a broadening (megaphone) pattern on total market cap with a horizontal support line — a break here implies a clear loss of market breadth and liquidity that can cascade into a 15–20% cap decline, per Brandt’s estimate. The context of an intraday Bitcoin plunge below $85,000 increases the probability of downside confirmation because BTC weakness typically pressures altcoins and market cap. Short-term implications: elevated volatility, higher probability of downside targets being hit, and potential short opportunities or defensive risk management (trailing stops, reduced leverage). Long-term implications: if supports hold or quickly recover, the move could form a bear-flag consolidation; if breaks persist, it could prolong a corrective phase and push sentiment toward risk-off, delaying sustained bull momentum. Similar prior events: confirmed triangle/broadening breakdowns in 2018–2019 and during 2022 led to multi-week to multi-month corrections. Traders should watch weekly closes, total cap support levels (around the cited $2.41T), and BTC price action for confirmation before positioning.