Raoul Pal, a well-known figure in the crypto world, predicts a significant price surge for Ethereum (ETH). He’s basing this prediction on some compelling chart patterns.
Bullish Wedge Pattern Suggests Breakout
Pal, CEO of Real Vision, points to a “bullish wedge” pattern forming on Ethereum’s weekly chart. He believes this pattern strongly indicates a major price movement is imminent. While he’s unsure of the exact timing, he suspects a breakout could happen this month, potentially followed by a slight dip in January before another significant price increase. He considers this wedge pattern one of the most powerful indicators in all of crypto.
ETH/BTC Pair Also Shows Strength
Pal’s analysis extends to the Ethereum/Bitcoin (ETH/BTC) pairing. He suggests that the performance of this pair is closely tied to the ISM Manufacturing Index, a key indicator of US economic health. As the ISM index rises, indicating a stronger economy, Pal expects ETH to outperform Bitcoin. He explains this by suggesting increased economic confidence leads to more investment in riskier assets, like Ethereum.
The ETH/BTC pair also shows a bullish wedge pattern on its weekly chart. Pal notes that ETH is currently trading at roughly the same level against Bitcoin as it was in 2017, demonstrating its resilience. He anticipates a breakout from this wedge, leading to further outperformance of Bitcoin by Ethereum.
The Bottom Line
In short, Pal’s bullish outlook for Ethereum is based on strong technical indicators (the bullish wedge patterns) and a connection to broader economic trends. He sees a significant price increase as highly likely, both for ETH in general and relative to Bitcoin. However, it’s important to remember that this is just one analyst’s opinion, and investing in cryptocurrencies carries significant risk.
