Real Vision CEO Raoul Pal believes that Ethereum (ETH) could see a price rally before another correction to bring it in line with macro conditions.
The former Goldman Sachs executive said the “overall feeling” is that macro conditions are so bad that ETH will pull back to new lows or retest recent lows.
However, Parr Believe Ethereum may go against the sentiment of the crowd.
“But my hunch is that MAX PAIN’s path is higher. Hedge funds scrambled to buy call options in case ETH breached $1,800-$2,000. They can’t help but get involved.
Above this level, retail will be forced in along with institutions. $2,200 to $2,300 is key for me…breakout happens before or after the merger. Once everyone re-enters the market, the market can correct sharply before rising again on the macro level. “
At the time of writing, ETH is trading at $1,645. The second-ranked cryptoasset by market capitalization is down nearly 2.5 percent in the past 24 hours.
The “merger” refers to Ethereum’s transition to its new proof-of-stake system. Ethereum developers say The Merge is currently scheduled to take place on September 19.
Pal also noted that the cryptocurrency is powered by the M2 money supply. M2 money supply roughly refers to the total amount of money in circulation, plus near money, or non-cash assets that are highly liquid and easily convertible into cash.
Pal said the M2 is about to “turn” and the cryptocurrency is “sniffing the turn.”
Pal also highlighted that Ethereum has outperformed Bitcoin (BTC) recently.
“ETH is also exploding compared to BTC.”
The macro expert said that Ethereum’s bullish momentum against Bitcoin (ETH/BTC) could be buoyed by strong fundamental growth.
“This is driven by the current superior network effects and network activity.”
Pal concluded by reiterating that investors and traders on the sidelines may be forced to participate once Ethereum is up and running.
“My hunch is that the market is undervalued (like stocks are) and the path to pain is higher. However, that’s just short-term thinking.”
Disclaimer: Opinions expressed on The Daily Hodl are not investment advice. Investors should conduct due diligence before making any high-risk investments in Bitcoin, cryptocurrencies or digital assets. Please note that your transfers and transactions are at your own risk and any losses you may suffer are your own responsibility. Daily Hodl does not recommend buying or selling any cryptocurrencies or digital assets, and Daily Hodl is not an investment advisor. Please note that The Daily Hodl engages in affiliate marketing.
Featured Image: Shutterstock/Admin9966