Ethereum (ETH) might be on the verge of a correction, according to a popular crypto trader.
Ali Martinez, a well-known analyst with over 69,000 followers on X (formerly Twitter), believes that ETH is forming a “rising wedge” pattern. This pattern is often seen as a bearish signal, suggesting that ETH could drop in price after a brief bounce.
Martinez predicts that ETH could fall to $2,350 if the correction plays out. However, he also notes that the bearish outlook could be wrong if ETH closes above $2,800.
As of writing, ETH is trading at $2,567. It’s down over 4% in the last 24 hours and nearly 3% in the past week.
This isn’t the first time an analyst has pointed to a potential rising wedge in ETH.
Brandt explained his trading strategy:
- He sees a five-month rectangle pattern (his favorite) that ended on August 4th.
- ETH retested the breakout line on August 14th.
- He’s seeing a rising wedge on the intraday chart.
Brandt is taking a short position on ETH, aiming for a target price of $1,651. He acknowledges that patterns fail more than half the time, but he’s ready to cut his losses if ETH breaks above $2,961.
It’s important to remember that this is just one analyst’s opinion. The cryptocurrency market is highly volatile, and predictions can be wrong.
Always do your own research and consult with a financial advisor before making any investment decisions. /p>
