According to U.Today, renowned trader Peter Brandt has been constructing a bullish argument for Ethereum since May 17, although he has not disclosed his future predictions for ETH or additional details about his purchasing strategy. Currently, Ethereum is making significant strides in the market, with the price of the second-largest cryptocurrency effortlessly breaking through the $3,600 resistance.
However, there is no foundational support beneath the price, indicating that any correction could potentially lead to a significant drop. With the breakthrough above $3,600, there could be a stronger upward movement around the 50-200 EMAs. Despite this, traders should be wary of the rapid price increase as subsequent prices can be highly unstable. It's also worth noting that Brandt's strategy could encompass a bearish scenario where Ether reverses around $4,000.
Given the rapid gains, the risk of a correction is always a possibility. Ethereum's current price surge lacks a solid support base, which means any pullback could potentially result in a significant drop. Traders are advised to be cautious and consider setting stop-loss orders to safeguard their investments. The Relative Strength Index (RSI) can be used to determine if Ethereum is entering the overbought zone. Currently, the indicator suggests that Ether is on the brink of becoming overbought and may face a reversal in the near future. Therefore, if you are going long, it is advisable to avoid overleveraging existing positions.
In general, Brandt's bullish stance on Ethereum around May 17 seemed reasonable, given that ETH reached the local support level of the 200 EMA, which acted as a springboard for it.