Legendary Trader “Shorts” Ethereum (ETH) to $650; Correction Ahead?

Legendary crypto trader, Peter Brandt has proven that he is truly bearish on Ethereum (ETH) after he revealed he just shorted the industry’s second-largest digital currency.

Ethereum (ETH) FUD Looming Large

Ethereum (ETH) is a digital currency with a dedicated community but also committed critics like Peter Brandt. Currently trading for $2,162.05, down by 2.28% in the past 24 hours. Though the trading volume is elevated at 47.27% to $9,967,236,941, Peter Brandt is convinced that Ethereum’s price is fated to slide further.

Taking to the X app, Peter Brandt acknowledged that while classical chart patterns are not sacred as they fail to perform by the books at all times, should Ethereum comply with the bearish script in the chart that accompanied his post, then the digital currency might plunge to new lows in the near term.

Per his forecast, Ethereum could drop as low as $1,000, and on the worst-case basis, it may drop to $650. Riding on his forecast for Ethereum in the long term, Peter Brandt said he has shorted the coin and that he has “a protective B/E stop.”

As a prominent figure and analyst in the crypto ecosystem, Peter Brandt’s projection carries a lot of weight that may impact trader’s sentiment regarding Ethereum (ETH). While nothing is impossible in the crypto world, it is worth noting that Ethereum has not dropped below the $1000 price mark since at least January 2021.

Odds of Ethereum Correcting?

Per the current price outlook, Ethereum has been on a major correction path for some days now. The digital currency has given up the gains accrued from earlier in the month when it traded as high as $2,401.76. While the likelihood of further decline cannot be ruled out, Ethereum has some important fundamentals to help boost its resilience across the board.

One of the most important of these fundamentals is the growing clamor and application for the Ethereum Spot Exchange Traded Fund (ETF) product by top investment managers like BlackRock. Just like Bitcoin spot ETF, approval of this product is poised to usher in massive institutional capital which might impact the demand and ultimately the price of the coin.

While Ethereum may correct in the short term in line with Peter Brandt’s projection, the longer-term outlook of the coin looks promising.