Peter Brandt, an analyst known for his Bitcoin analysis, shared his latest analysis of Ethereum and drew attention to the "bear trap" formation in the ETH/BTC pair.
Brandt warned that Ethereum could rise rapidly with increasing whale demand, drawing attention to the bear trap in ETH/BTC. After the Dencun update, which was met with great expectations, Ethereum fell below $3,500. Ethereum, which started to underperform Bitcoin, thus recorded its lowest level against BTC since April 2021. However, Peter Brandt claimed that the current outlook in Ethereum could be a "bear trap".
Is Ethereum Gearing Up for a Rise?
Peter Brandt, in his latest post shared on platform X, claimed that the Ethereum price could continue its journey by forming a "bear trap," following his comments about Ethereum being an insignificant currency and a Bitcoin copycat. Despite his view of Ethereum being valueless, Brandt also added that the largest altcoin would always see demand.
Ethereum accelerated its trend that began in October, fueled by expectations of the Dencun update and potential spot ETF approval in the first quarter of the year. However, by March, the cryptocurrency started retreating after the Dencun update and amid increasing rumors that the spot ETF wouldn't be approved, ultimately falling back to the $3,000 mark. Additionally, Ethereum reached its lowest level against Bitcoin in nearly three years and witnessed a decline in its dominance rate. This is attributed to Solana's rapid rise and increasing market share, alongside the Bitcoin network's halving event.
Commenting on Ethereum, Peter Brandt added that there are enough large whales invested in the cryptocurrency, making it difficult for the price to fall significantly. Blockchain data seemingly supports Brandt's remarks, indicating a rise in whale activity on the Ethereum network following the ETH/BTC's drop to record lows.
The Latest on Ethereum
After halting its downward momentum around the $3,200 zone last week, Ethereum carried its positive weekend trend into the new week.
On the first day of the week, the cryptocurrency rose rapidly alongside the broader market, reaching a value of $3,650 by the time US trading hours began, reflecting an increase of over 5%. This zone also coincides with the resistance level observed since the week of March 18th.