Old-school commodity trader Peter L. Brandt predicts Ethereum price will nosedive to a 2022 low of $800

Peter L. Brandt, who has been in the business since the mid-1970s, has stirred the crypto community with his recent tweet, where he predicts Ethereum to nosedive to a 2022 low of $800.

Old-school commodity trader Peter L. Brandt, who has been in the business since the mid-1970s, has been known to stir the crypto community with his bold predictions. Having traded commodities like copper, silver, and sugar, Brandt brings a unique perspective to the world of crypto.

Recently, Brandt took to Twitter to share his predictions for Ethereum (CRYPTO: ETH), which saw a 2022 low of $800.

What Happened: After a year that saw the second-largest cryptocurrency slide by a massive 46%, Brandt’s prediction is no small feat. Since Wednesday, when ETH crashed by 4%, following Bitcoin (CRYPTO: BTC) down after the Fed Reserve’s announcement about maintaining the current interest rates, it has recovered by 3.56% and is changing hands at $1,601. When Brandt published his chart, ETH traded at $1,587 per coin.

Earlier this week, Brandt slammed Ethereum as “worthless junk.”

Annually, the chart shows a deeper decline.

Credit: Peter Brandt via Twitter

More importantly, Brandt’s chart clearly demonstrates the way he expects Ethereum’s price trajectory to go from the current trading point. The chart shows a descending triangle pattern, which usually predicts further and deeper price declines.

Top traders typically use triangles to predict the continuation of the prevailing trend. In this case, the triangle pattern is forming after a bearish trend, which began in early 2022.

The apex of the triangle coincides with the 2022 low of around $800. From there, the chart predicts a steeper decline, suggesting that the triangle is likely to break down.

The lower boundary of the triangle is defined by a series of lower highs, while the upper boundary is formed by a descending trendline.

The apex of the triangle is typically reached when the two boundaries converge. In this case, it appears to be forming at the 2022 low of around $800.

After the apex is reached, the triangle is expected to break down in the direction of the prevailing trend. Since the triangle is forming after a bearish trend, it is likely to break down to the downside.

This move will carry the price toward the lower boundary of the triangle, which is currently around $400. However, it is also possible for the triangle to break out to the upside, which would carry the price higher.

The direction of the breakout will depend on a variety of factors, including the strength of the sellers and buyers, as well as the overall market conditions.

What Next: It will be interesting to observe whether Brandt’s prediction comes true, considering his past predictions have gained attention in the crypto community.

Earlier this year, Brandt made headlines when he said that he was short copper and had no interest in discussing it further.

Brandt’s prediction comes amid heightened interest in the crypto market, particularly with the recent approval of seven spot exchange-traded funds (ETFs) by the U.S. Securities and Exchange Commission. These ETFs, tracking various cryptocurrencies, are set to launch on August 8.

Among these ETFs, four will follow the price of Bitcoin, while two will track Ether. One ETF will be linked to a basket of cryptocurrencies.

The famous NBA player Scottie Pippen predicted the start of the biggest altcoin season this Sunday. He stated that historically, such a bull run has always begun approximately 340 days after a Bitcoin halving.

The most recent halving took place last year on April 20. That year, the SEC also approved on spot ETFs based on Bitcoin and Ethereum. All along, Bitcoin ETFs have been showing much higher inflows and smaller outflows than Ethereum ETFs.

Scottie Pippen stated that he was bullish on ETH long-term since he is building a project on this network. It is focused on AI, gaming and tokenization of real-world assets (RWA).

Tron founder and owner of two crypto exchanges, Poloniex and Huobi, Justin Sun, also tweeted that despite the recent poor performance, Tron does not intend to sell its Ethereum holdings. What they plan is to seek more opportunities to cooperate with Ethereum developers and work to improve the crypto space together.