The crypto market is experiencing a decline, and renowned trader Peter Brandt provides valuable insights into the price action of ETH.
Peter Brandt, a seasoned trader, has recently expressed his opinions on the price action of Ethereum (ETH). In a message that has garnered the attention of the crypto community, Brandt expressed his perspective on the potential for trading, emphasizing the significance of establishing a clearly defined risk threshold for any transaction.
“I consider it crucial to have a well-defined risk factor in a trade, as it allows me to admit when I am mistaken and reduce my losses,” Brandt stated.
Brandt applied this principle to Ethereum, observing that it presently exhibits a “well-defined short-side transaction.” He emphasized that the transaction is still valid as long as Ethereum remains below approximately $2,830.
Nevertheless, Brandt suggested that the transaction would be deemed “wrong” and that it may be time to abandon the position if the ETH price were to surpass this threshold.
“ETH is a short-side wager that is clearly defined.” Brandt stated that the transaction is incorrect above approximately 2830.
Tuesday’s trading session saw Ethereum plummet to a low of $2,393, the third consecutive day of losses since the high of $2,820 on August 24..
This occurs as cryptocurrencies reverse the momentum they experienced last week following Federal Reserve Chair Jerome Powell’s most explicit indication yet that the central bank intends to reduce benchmark interest rates from a peak of over two decades.
In yesterday’s trading session, Ethereum experienced an 8.30% decline before paring some of the losses to trade at approximately $2,480, a 7.7% decrease in the past 24 hours.
CryptoQuant reported that traders were speculating on the potential for price increases, which led to a fragile environment. The funding rates have remained positive, and open interest has increased by 31% from $13.5 billion to $17.9 billion since Aug. 5, suggesting a premium for perpetual contracts.
The Ethereum long liquidations have reached $55 million, the greatest levels since August 5, causing the already fragile positions to roll over. In addition, the Open Interest decreased by $2.2 billion as a result of the stop out of numerous speculators.
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