Peter Brandt Warns Ethereum (ETH) Bulls as Price Skyrockets Past $3,000

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Ethereum, the second largest cryptocurrency by market capitalization, surpassed the $3,000 mark in today's trading session, capping three days of gains.

At the time of writing, ETH was up 4.46% in the last 24 hours to $3,051 after reaching intraday highs of $3,061. The gain comes as Bitcoin hits another all-time high, reaching $77,312 in Friday's trading session.

Notably, Ethereum outperforms Bitcoin in daily and weekly gains, which are 5% and 22%, respectively, compared to Bitcoin's 1% and 10% advances during the same span.

As Ethereum gains traction in the market, not everyone is fully convinced of a continued rally.

Veteran trader Peter Brandt, known for his candid takes on cryptocurrency trends, had a surprising message for Ethereum bulls after taking a long position in Ethereum.

In a tongue-in-cheek tweet, Brandt wrote, "Sorry ETH bulls. I think I will jinx your trade by announcing that I am long Ether. Sorry. I am an auto-fade on ETH."

Brandt's message playfully implies an impending reversal or a potential drop in Ethereum’s price. However, Brandt did not elaborate on his tweet, leaving it open for interpretation.

Impending reversal?

Brandt included in his tweet a screenshot of the ETH daily chart, highlighting a diagonal trendline and a probable pattern breakout target of $2,964.

In separate analyses in October, Brandt highlighted a head and shoulders bottom or inverted head and shoulders pattern forming on the ETH chart and said at the time that he was flat on ETH, meaning he was not taking any positions yet.

The inverse head-and-shoulders pattern is a major reversal signal that forms at the end of a downtrend. It has three sequential troughs, the middle one being the deepest. The target is normally estimated by measuring the vertical distance between the neckline and the lowest point of the head. This value will be added to the neckline's breakout point distance.

If going by Brandt's most recent analysis, his target of $2,964 has been well surpassed. A tip for trading the inverted head and shoulders pattern is to exit the position when the price reaches the target level or shows signs of reversing.

Howbeit, technical patterns alone may not properly anticipate future price movement; broader market sentiment may also play a role. That said, where Ethereum trends next remains unknown.