Peter Brandt and JPMorgan are both pessimistic about ETH as it grapples with $ 3,000

Veteran trader Peter Brandt, who has been trading commodities since the 1970s, believes ETH is in a new bear market, according to a tweet he posted on Saturday.

ether $ ETH is in a bear trend because it is an overly complicated / expensive / cumbersome platform for the NFT / specialty token universe / metaverse. As a matter of fact, $ ETH‘s bear trend against $ SOL is absolutely guaranteed
NFT nerds, sorry if I didn’t use the “correct” terminology pic.twitter.com/GDrCo8FwFIT

– Peter Brandt (@PeterLBrandt) January 8, 2022

“ETH is in a downward trend because the platform with NFT / special universe tokens / metaverse is too complicated / expensive / difficult to use. In fact, ETH’s downward trend towards SOL is completely certain. Forgive me if I am not using the “correct” terminology.

SOL ranks 6th by market cap after explosive growth in 2021, but there is still a lot to be done to dethrone ETH.

The Ethereum community got angry at Brandt’s bearish analysis, with some members claiming that the trader’s tweets could be used as an indicator of opposition.

Brandt accepted the criticism and joked that it was time to buy more when he said certain assets were falling and vice versa.

At the same time he also has guard predicted its price drop on ADA in response to a disgruntled follower.

“Do you know what the truth is? ADA was right then. If you lose money, so is your money. It’s time to grow up! “

Earlier this week, the trader also attempted to warn Bitcoin Dip buyers not to “grab a falling knife” during the collapse of the leading cryptocurrency like this one. Bitcoin magazine reported.

JPMorgan has also cut prices

ETH had a difficult start to the new year, more than 20% less since January 1st. On January 8th, the price on Coinbase fell to $ 3,000, its lowest level since September 30th. It also fell 6% versus Bitcoin, which dealt a blow to analysts who had predicted that ETH would flip BTC this year.

Of course, it wasn’t just Brandt who predicted a drop in prices. JPMorgan Chase researcher Nikolaos Panigirtzoglou recently predicted that ETH will continue to lose market share in decentralized finance due to poor scalability.

Technical analysis of the ETH

Key Support Levels: $ 3,000- $ 2,750.

Major Resistance Levels: $ 3,300 – $ 3,600.

There was a sharp dip last week with ETH falling to USD 2,987 (Bitstamp) on Saturday before bouncing above the USD 3,000 support today.

Last Wednesday the market started selling continuously. So far, ETH has seen four consecutive red daily candles that have broken key support levels of $ 3,600 and $ 3,300. Now these key levels have turned into resistance.

At the time of writing, the price appears to have hit a local low above the $ 3,000 psychological support and ETH could make a temporary correction towards key resistance levels and pause the selloff for a while.

In the event of a break below $ 3,000, the next major support to watch is the September low at $ 2,750.

Source: TradingView

Trading Volume: Sales volume peaked on Thursday and has declined since then, especially on Saturday.

This enabled ETH to stop its downtrend at just over $ 3,000 (so far) on Sunday. However, the price action at the end of the week won’t be overly precise as most traders rest and the world market also affects the general sentiment.

RSI: The daily RSI is hitting the oversold territory and could rise during the relief rally. However, this is not yet optimistic as it could be temporary in case seller pressure returns in the coming week.

MACD: The daily MACD is falling and the histogram is showing the first signs of bearish selling. If this continues, ETH could attempt to rebound to the USD 3,300 resistance level.

Source: TradingView

The trend for ETH is bearish. Traders should keep an eye on the price action on Monday to see what happens next to ETH.

Short term price forecast

After a bloody week, ETH finally found some support above the $ 3,000 mark. Buyers need to protect this level well. Otherwise, it will spell disaster for the largest altcoin market. Confidence in support levels is pretty low, especially when the price fell below key milestones without rebounding last week.

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