Legendary trader Peter Brandt announced that he took a short position on Ethereum futures. However, there seems to be a problem. Known for his critical views on Ethereum, Brandt has now decided to maintain this position. What lies behind Brandt’s move?
Why Did Brandt Enter a Short Position for Ethereum?
Brandt mentioned that he took a short position in Ethereum futures as the weekend approached. However, there is a notable detail. Brandt emphasized that he avoids opening short positions in spot transactions due to the high counterparty risk. It is known that Brandt generally takes short positions in Ethereum because he does not see a potential rise in the cryptocurrency ETH in the future.
Brandt had previously predicted that Ethereum’s value could drop to $600. Although this prediction has not yet materialized, Brandt stated that he started trading Ethereum and the charts offered good opportunities for transactions.
Ethereum Chart Shows a Decline
Brandt, sharing a chart showing the current state of Ethereum, demonstrated how Ethereum has fallen since the peak in April. The chart indicated a sharp decline, with a recent turning point at the level of $3,058.43.
Currently, the price of Ethereum has fallen below the $3,000 support level, dropping 4.17% to $2,908.05 within 24 hours. Brandt’s move to take a short position in Ethereum futures seems like an unexpected move. However, Brandt always warns his followers to use stop loss to prevent losses and mentioned that he would change his futures position on Monday if the trade goes against him by conducting a spot transaction.
Peter Brandt Is a Widely Followed Figure in Crypto Transactions
Peter Brandt, experienced in crypto transactions, is followed by a wide audience. However, not everyone agrees with the doomsday scenario for Ethereum. Especially considering the recent series of protocol upgrades Ethereum has undergone, this becomes even more apparent.
The Ethereum Blockchain is currently trying to solve gas fee issues through a proposal presented by co-founder Vitalik Buterin. This could be a promising sign for the future of Ethereum. Regarding Brandt’s short position, it remains to be seen how it will impact the market and how accurate this prediction will turn out to be. However, a recovery in Bitcoin could also push ETH above $3,000.
