Iconic trader Peter Brandt has once more expressed his skepticism towards Ethereum (ETH), emphasizing his conviction that the cryptocurrency faces a bearish outlook.
The feeble price chart of Ethereum (ETH).
As per a post on X, Peter Brandt highlighted his bias towards Ethereum, asserting that adopting a short position on X is currently the most favorable strategy. Brandt clarified his role as a swing trader, discrediting any suggestion that he might be holding Ethereum (ETH) for the long term.
Brandt’s post featured a price chart depicting Ethereum hovering near the resistance level at $2,448.25. Despite the digital currency’s notable surge from $1,242 in late June 2022 to its current trading value of $2,272, Peter Brandt remains unconvinced about Ethereum making a significant breakout in the near future.
A few weeks ago, Peter Brandt triggered bearish speculation by disclosing that he had initiated a short position on Ethereum (ETH) within the price range of $600 to $1000. Since then, Ethereum’s valuation has not experienced a significant downturn, partially due to the prevailing market sentiment concerning the potential approval of a Bitcoin Exchange Traded Fund (ETF) by the United States Securities and Exchange Commission (SEC).
Citing the correlation with Bitcoin, Ethereum has displayed resilience, a connection that Brandt contends will not prevent the second-largest cryptocurrency from dropping below the $2,100 support level. According to him, if Ethereum falls below $2,100 and rebounds to prove him wrong, it wouldn’t concern him much.
The effects of the Ethereum Denver Upgrade.
Peter Brandt raises concerns about Ethereum’s subpar usability due to high fees and slow transaction speeds, citing these issues as reasons why Ethereum (ETH) might not be a listed asset in the next decade, especially when compared to alternatives like Solana (SOL).
Nevertheless, the upcoming Dencun Upgrade, incorporating Proto-Danksharding to enhance Ethereum’s scalability, could serve as a crucial game-changer for the protocol. Expected later this year, the Dencun Upgrade aims to strengthen the capabilities of layer-2 scaling solutions such as Arbitrum (ARB), Optimism, and Base. This enhancement is anticipated to assist Ethereum (ETH) in achieving its long-term goals.
Additionally, the potential introduction of an Ethereum (ETH) ETF product may contribute to the protocol’s evolution into a more mature asset class, potentially shielding it from unfavorable valuation downturns.