Legendary trader Peter Brandt has once again come out against Ethereum (ETH) in a bid to reinforce his beliefs that the digital currency has a bearish future.
The Weak Ethereum (ETH) Price Chart
According to a post on X, Peter Brandt noted his bias on Ethereum, adding that he believes a short position on X is the best approach at this time. Peter Brandt noted that he is a swing trader and not a HODLer, discounting any indication that he may be holding Ethereum (ETH) in particular for the long term.
Peter Brandt’s post was accompanied by a price chart that shows Ethereum flirting around the resistance point at $2,448.25. While the digital currency has recorded an impressive liftoff from $1,242 as of late June 2022 to the $2,272 it is currently trading at at the moment, Peter Brandt chooses not to pitch Ethereum for a significant breakout moving forward.
I know in advance that this Tweet will land like an egg dropped onto a pile of scrap metal. My bias remains to be short $ETH. I’m a swing trader in ETH, not a hodler. The chart lacks underlying strength IMO. If I go short below 2100 and am wrong, that’s not a big deal to me. pic.twitter.com/bWEflcoNn0
— Peter Brandt (@PeterLBrandt) January 9, 2024
Peter Brandt sparked a bearish intrigue some weeks back when he revealed that he has shorted Ethereum (ETH) to a price range between $600 and $1000. Ethereum has not recorded a significant plunge in valuation from that time to date, in part because of the general sentiment in the market regarding the potential approval of spot Bitcoin Exchange Traded Fund (ETF) by the United States Securities and Exchange Commission (SEC).
Drawing on the correlation with Bitcoin, Ethereum has managed to stay resilient, a relationship Brandt believes cannot save the second-largest cryptocurrency from falling below the $2,100 support zone. In his words, should Ethereum fall below $2,100 and bounce back to prove him wrong, it will not be a big deal to him.
The Impact of Ethereum Dencun Upgrade
One of the issues Peter Brandt has against Ethereum is its bad usability owing to higher fees and slow transaction speed. For these anomalies when compared to other notable alternatives like Solana (SOL), Brandt believes Ethereum (ETH) may not be a listed asset in the next 10 years.
However, the forthcoming Dencun Upgrade that will employ Proto-Danksharding to help Ethereum scale up may prove to be the right game-changer that the protocol needs. Scheduled for later in the year, Dencun Upgrade will bolster the capabilities of even layer-2 scaling solutions like Arbitrum (ARB), Optimism, and Base in a way that can help Ethereum (ETH) achieve its ultimate goal.
The potential Ethereum (ETH) ETF product in view may also help transition the protocol to a more mature asset class, setting it free from unwholesome valuation plunges.
