Wall Street Legend Says Ether’s 50% Rally Is Questionable

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Last Updated on 19 July 2022 by CryptoTips.eu

Jeroen Kok

Jeroen is one of the lead copywriters on Cryptotips.eu and discusses all recent events in the crypto market. This includes news updates, but also price analyzes and more. He developed his passion for cryptocurrency during the bull run in 2017. He has learned a lot since then. The combination of cryptocurrency and creative writing is perfect for Jeroen and an excellent way to share his knowledge with a wide audience. Find me on LinkedIn / [email protected]
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In case you haven’t noticed, Ethereum is up about 50% in a week. Ever since it was finding support on the $1,000 price line, it has been on a tear.

Now, legendary Wall Street trader Peter Brandt, has claimed he finds the recent upswing questionable. Given that investors tend to follow Peter’s advice, we take a closer look.

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Light volume

Brandt is the author of several books on trading and the profession of technical analysis. His book diary of a professional commodity trader is considered a bible to many in the City of London. Back in 2011 he was named as one of the 30 most influential persons in the world of finance.

Back in October 2020, Brandt claimed he saw a ‘big buy signal’ on Bitcoin. At the time, Bitcoin traded for $10k. In the week after he said that, it rose 20%, in the month after he said that, Bitcoin doubled in price to $20k.

Ever since then, crypto investors look at Brandt’s social media posts for clues on crypto trading. The man regularly tweets about Bitcoin, Ethereum and Dogecoin (he saw a bullish technical setup for the most famous memecoin right before it rose from 6 to 75 cents).

This time round is different though, as Brandt’s Ethereum analysis has been proven wrong. Around the half of June, he warned his followers that Ethereum might fall as low as $600, which caused many to stay on the sidelines in the past few weeks.

Last week this site noted that the $1,000 support line would prove to be very critical for Ethereum. Ever since the calculation of ‘the merge’ for Ethereum (the merger with the Beacon Chain proof-of-stake system which is now supposed to happen end of September), the coin founded by Vitalik Buterin has proven unstoppable.

This morning, at the time of writing this article, it already traded at $1,500, or about a 50% rise since that important support level.

Brandt does not believe it has much further to run though, as he said that:

The upturn came on extremely light volume. I.E. the thrust was not based on aggressive buying from strong hands and is, therefore, questionable