Peter Brandt Suggests Ethereum Price Could Decline by 40
Ethereum’s price continues to face downward pressure as exchange reserves increase, ETF inflows stagnate, and its dominance in the decentralized finance sector diminishes.
As of Friday, November 1, Ethereum (ETH) was valued at $2,550, reflecting a 37% decline from its peak earlier this year. In stark contrast, Bitcoin (BTC) is just 4.7% shy of reaching its all-time high.
Ether is grappling with a number of obstacles. Recent data from CryptoQuant indicates a rising volume of tokens being held on exchanges, pointing to a trend of some investors liquidating their assets. Notably, both the Ethereum Foundation and Vitalik Buterin are among those reportedly offloading their holdings.
Moreover, interest in spot Ethereum ETFs has waned. Research by Sosovalue reveals that cumulative outflows have reached $480 million, while Bitcoin ETFs have enjoyed inflows exceeding $24 billion.
Additionally, Ethereum has seen a decline in its market share within the decentralized exchange arena, now facing stiff competition from Solana (SOL). Data indicates that Solana-based DEX platforms such as Raydium and Orca processed $51 billion in trading volume in October, outpacing Ethereum’s $42 billion.
In the wake of these developments, Ethereum’s market share is likely to come under further strain with the upcoming launch of Uniswap’s layer-2 blockchain, Unichain. Furthermore, Ethereum’s grip on the stablecoin market has weakened, dropping to approximately 48%, now trailing behind Tron, BNB Smart Chain, Arbitrum, and Base. Just a year prior, Ethereum commanded over 60% of the stablecoin market.
Stablecoins have become integral to the cryptocurrency ecosystem, with Tether reporting a net profit of $2.2 billion in the third quarter alone, bringing its total profit for the year to $9 billion. Additionally, stablecoins are thriving in South Korea, where they play a crucial role in facilitating cross-border transactions. Nations under heavy sanctions, such as Iran, North Korea, and Russia, have also adopted these digital tokens.
As for Ethereum’s price trajectory, analyst Peter Brandt suggests a significant decline could be on the horizon. He forecasts a drop to $1,551, which would represent a 40% fall from current prices. The daily trading chart reveals that Ethereum remains below its 50-day moving average and key support level of $2,817, which is the neckline of a double-top pattern that peaks at $3,975.
Additionally, Ethereum appears to be forming a bearish pennant pattern, with the triangle nearing its confluence point, hinting at a potential bearish breakout in the upcoming weeks. Should this occur, the primary level to monitor will be $2,117, marking its lowest point since August 5.
