Veteran Trader Peter Brandt Breaks Silence on Ethereum (ETH) Price Action

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As a seasoned crypto investor with over two decades of trading experience under my belt, I find Peter Brandt’s insights both insightful and prudent. His emphasis on having a well-defined risk point is something I firmly believe in, as it has helped me navigate through the volatile waters of the cryptocurrency market numerous times.

Experienced trader Peter Brandt recently voiced his opinions on Ethereum‘s (ETH) price movements. In a tweet that sparked interest within the cryptocurrency community, Brandt expressed his views on potential trading scenarios, emphasizing the significance of setting clear risk limits for every trade.

In my analysis, one key factor I always consider when engaging in a trade is identifying a clearly defined risk level at which I can acknowledge potential mistakes and promptly limit my losses.

In my analysis, identifying a clearly defined risk level is crucial for any trade I consider. For $ETH, if it surpasses the 2830 mark, that would signal the short-side trade is no longer valid for me.— Peter Brandt (@PeterLBrandt) August 27, 2024

Brandt observed that the Ethereum market offers a clearly defined opportunity for a short position trade, which he referred to as ETH‘s “well-defined short-side trade.” He emphasized that this trading strategy is viable so long as Ethereum’s price stays below roughly $2,830.

Should the Ethereum (ETH) price surpass this point, as suggested by Brandt, the trade could be deemed incorrect, potentially signaling a need to close the position.

“ETH is a well-defined short-side trade. Above 2830 or so the trade is wrong,” Brandt mentioned.

Ethereum price dips

In the latest trading session on Tuesday, Ethereum hit a low of $2,393, representing the third straight day of declines following its peak of $2,820 on August 24th.

This is a development occurring as cryptocurrencies reverse the momentum they picked up following Jerome Powell, the Federal Reserve Chair, giving his most explicit statement yet about the central bank’s plans to decrease key interest rates from levels not seen in over two decades.

Yesterday, Ethereum experienced a decrease of approximately 8.30%, dropping to roughly $2,480 during trading. However, it managed to reduce some of the losses, now standing with a decline of about 7.7% over the past 24 hours.

Based on CryptoQuant’s analysis, traders have been anticipating higher prices, creating a somewhat unstable market situation. Since August 5th, the open interest has grown by approximately 31%, rising from $13.5 billion to $17.9 billion. Furthermore, funding rates continue to be positive, suggesting that there’s an ongoing premium for perpetual contracts.

With Ethereum long liquidations hitting a record $55 million since August 5th, previously tenuous positions are beginning to collapse. Consequently, numerous traders have been forced out of the market, leading to a significant decrease in Open Interest by approximately $2.2 billion.

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2024-08-28 16:23