The Ethereum (ETH) price skyrocketed last week, making a high of $1774 despite the U.S. Fed rate hike and negative GDP report. While ETH price is moving sideways with the fundamentals staying strong, crypto expert Raoul Pal asserts the Ethereum rally will continue over the $2000 level as hedge funds, retail and institutional investors look to jump in.
Raoul Pal Believes Crypto Strong Amid Big Picture Macro
Investment strategist and macroeconomics expert Raoul Pal in a tweet on August 1 claims crypto will outperform other assets. Especially, Ethereum (ETH) looks stronger than Bitcoin (BTC) due to the Merge and rise in network activities.
The general sentiment is that markets may retest low levels due to bad macro conditions. In fact, people who invest in cryptocurrencies had turned part of their crypto investments into cash. Raoul Pal noted that hedge funds, retail, institutions, and family offices are underweight on crypto.
Ethereum (ETH) is likely to stay strong above the $1500 psychological level and rally higher. Hedge funds have already started pouring funds into Ethereum, making buy calls for ETH to break $1800 and reach the $2000 psychological level.
Ethereum (ETH) Price Trend. Source: Raoul Pal
The ETH price above the $1800 level will most likely attract retail and institutional investors. Expect a high of $2200-$2300 pre- or post-Merge. Thereafter, a sharp correction and again a price pump after the Merge may be seen based on macro factors.
Raoul Pal says “the macro is key here.” Global M2, a measure of money supply, the liquidity in the crypto market will improve as the G2 improves. Indeed, the rising ISM 16-month lead, ISM Manufacturing Index, indicates rising crypto prices in the second half of 2022.
Global M2 and Crypto Market Cap. Source: Raoul Pal
Ethereum (ETH) Starting to Price In
The Merge will be significant for the Ethereum price, as co-founder Vitalik Buterin said “Merge isn’t priced in yet.” However, Raoul Pal believes the last 3 years have been all about ETH. Also, ETH is breaking out versus Bitcoin due to superior current network effects and network activity.
Meanwhile, Bitcoin’s (BTC) price has outperformed Nasdaq 100, with the price currently trading at $23,304.
“Sure, other tokens will outperform ETH but crypto overall will outperform all other assets, in my view. The long-term is clear.”
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