Amid the negative U.S. GDP record and high Fed rate, there seems to be a positive turning for some digital assets, especially Ethereum. For example, the global second largest cryptocurrency by market cap, Ethereum (ETH), is staging a solid bounce back.
Over the past few days, Ether has progressively increased as it surges to $1,774 in its market. This has created a new phase for the crypto assets with more growing impressive within the industry.
From the perspective of Raoul Pal, a crypto expert, Ethereum is likely to display continuous price growth across the $2,000 level. Also, its increase in value would create entry points for more investors in the token’s hedge funds, retails, and even institutional investments.
The crypto expert’s presumption comes from the continuous price rise of Ether and its derivatives. However, with its upward moves, the fundamentals of the token remained formidable.
Recently through a tweet, investment strategist Pal stated that cryptocurrencies would excel over other digital assets.
The macroeconomic expert pointed out the performance of Ethereum (ETH) shows a stronger disposition than that of Bitcoin (BTC). Furthermore, he cited that the upcoming Merge contributes to hiking the recent Ethereum Network activities.
With its current performance trend, Ethereum can remain robust as it crosses the $1,500 psychological level and keeps surging.
Furthermore, this increasing path is more realistic as the hedge funds are bringing more funds to Ethereum. Hence, there is potentially more demand for Ether as it reaches the $1,800 mark, possibly hitting its psychological level of $2,000.
Having experienced the crypto winter and macro conditions, the markets’ overall sentiment could retest bottom levels.
The current polling would show that many cryptocurrency investors have liquidated their investments to have cash. According to the crypto expert Pal, crypto underweights for retail, hedge funds, institutions, and even family offices.
In Pal’s prediction, Ethereum would have more retail and institutional investors once the price of Ether crosses the $1,800 level. Also, for both the pre-and post- Merge of the Ethereum, there’s likely to be a rise within the $2,200 to $2,300 region.
Crypto Market Cap and Global M2. Source: Raoul Pal
The economist stated the possibility of macro factors influencing the price trend. Hence, he foresees a sharp correction and a price pump following the Merge.
Ethereum surges on the daily chart | Source: ETHUSDT on TradingView.com
According to Raoul Pal, the macro is a key influencer. He cited the role of global M2, a money supply measure. So, as the G2 gets better, there will be an improvement in the crypto market liquidity. Also, he maintained that the increase of the ISM Manufacturing Index, ISM 16-month lead, shows a potential surge of crypto prices within the year’s second half.
The Ethereum co-founder Vitalik Buterin had stated that the Merge is yet to be priced in. But expert Pal believed Ethereum had significantly impacted the crypto space for the past three years.
Featured image from Pexels, chart from TradingView.com