Amid record negative US GDP and high Fed rate, there seems to be a positive development for some digital assets, especially Ethereum. For example, the world’s second largest cryptocurrency by market cap, Ethereum (ETH), is staging a strong rebound.
Over the past few days, Ether has been steadily rising as it hits $1,774 in its market. This has created a new phase for crypto assets with more impressive growth within the industry.
From the perspective of Raoul Pal, a crypto expert, Ethereum is likely to show continued price growth through the $2,000 level. Moreover, its increase in value would create entry points for more investors in hedge funds, retailers, and even institutional investments of the token.
The crypto expert’s presumption comes from the continued rise in the prices of Ether and its derivatives. However, with its upward moves, the fundamentals of the token remained formidable.
Recently, via a tweet, investment strategist Pal said that cryptocurrencies will excel against other digital assets.
The general feeling is that the macro is so bad that there needs to be a new low or a retest of the low.
But my hunch is that the MAX PAIN path is higher.
Hedge funds are scrambling to buy calls just in case ETH breaks from 1800 to 2000. They can’t afford not to participate. pic.twitter.com/VdotGywBDj
— Raoul Pal (@RaoulGMI) July 31, 2022
The macro expert pointed out that the performance of Ethereum (ETH) shows a stronger disposition than that of Bitcoin (BTC). Furthermore, he said that the upcoming merger will help increase the recent activities of the Ethereum network.
With its current performance trend, Ethereum may remain robust as it breaks through the psychological level of $1,500 and continues to rise.
Additionally, this growing trajectory is more realistic as hedge funds bring more funds to Ethereum. Therefore, there is potentially more demand for Ether when it reaches the $1,800 mark, possibly reaching its psychological level of $2,000.
Ethereum macro conditions could lead to a retest of lower levels
After experiencing the crypto winter and macro conditions, overall market sentiment may retest lows.
The current survey would show that many cryptocurrency investors have liquidated their investments for cash. According to crypto expert Pal, crypto is underweight for retail, hedge funds, institutions, and even family offices.
In Pal’s prediction, Ethereum would have more retail and institutional investors once Ether’s price crosses the $1,800 level. Also, for the pre-merger and post-merger of Ethereum, there will likely be an increase in the region of $2,200 to $2,300.
The economist raised the possibility that macroeconomic factors influence price developments. Therefore, he foresees a strong correction and price pump after the merger.
According to Raoul Pal, macro is a key influencer. He cited the role of global M2, a measure of money supply. So, as the G2 improves, there will be an improvement in the liquidity of the crypto market. Furthermore, he argued that the increase in the ISM manufacturing index, ISM 16-month lead, shows a potential surge in crypto prices in the second half of the year.
Ethereum co-founder Vitalik Buterin had said that the merger had not yet been considered. But expert Pal believed that Ethereum had had a significant impact on the crypto space over the past three years.
Featured image from Pexels, chart from TradingView.com