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Veteran Trader Peter Brandt recently shared insights into his trading strategy, highlighting four trades he is currently involved in, including Ethereum, the second-largest cryptocurrency by market capitalization. 

The U.S. Securities and Exchange Commission (SEC) approved applications to list exchange-traded funds (ETFs) linked to the price of Ethereum in the past week, potentially clearing the way for the products to begin trading later this year.

Ethereum rose over the weekend, buoyed by increased optimism following the approval of U.S. Ethereum ETF applications. At the time of writing, ETH was up 2.38% in the previous 24 hours to $3,905, having reached a high of $3,950. 

Brandt's strategy is rooted in classical charting principles, a methodology he has honed over his 40-year trading career. As a swing trader who meticulously draws lines on charts to identify and act on pattern breakouts, Brandt has disclosed that he is currently long on ETH on the spot market.

Swing trading is a strategy that aims to capture gains in a financial instrument within an intermediate time frame, which can range from days to weeks. 

Brandt's approach to swing trading involves a thorough analysis of price charts to identify critical support and resistance levels and use trend lines to predict probable breakouts or breakdowns in patterns. Brandt primarily uses technical analysis to find potential entry and exit points, as well as defined chart patterns.

In his recent tweet, Brandt posted an Ethereum chart highlighting a breakout with a target of $4,083. Brandt's current position — being long on ETH — indicates his expectation that the price of Ethereum might rise.

This stance seems to have been informed by his analysis of Ethereum's price movements and broader market trends. Despite having a 55% hit rate in his trades, Brandt never overlooks the importance of risk management, frequently emphasizing the use of stop-loss orders.

This disciplined approach ensures that even if the market moves against his position, the loss will be contained within an acceptable range.