We usually know macro guru Raoul Pal as a relentless Solana (SOL Coin) advocate. However, Pal is now pointing the finger at another altcoin. The macro guru suggests that Ethereum is poised for an explosive move.
SOL Coin advocate Pal expects a breakout from the leading altcoin!
In a new YouTube strategy session, Raoul Pal shared his views on the market. Pal, a staunch Solana (SOL Coin) advocate, this time pointed to its rival. Pal says Ethereum is forming a bullish wedge pattern on its weekly chart. He also says it is setting up the leading altcoin for a breakout. In this context, the macro guru makes the following statement:
Ethereum’s weekly chart has yet to breakout, but it is very close. Whether we break out this month, which is my prediction, whether we retest the retracement caused by liquidity in January, or whether we retreat a little here and then explode, either way, this chart, this wedge formation is one of the strongest formations in all cryptos in my opinion and shows that we will make a very big move in Ethereum.
‘Ethereum will outperform Bitcoin!’
Pal also evaluates the ISM Manufacturing Index, which is seen as an indicator of the health of the US economy. Based on this, the macro guru suggests that the Ethereum parity (ETH / BTC) will rise against Bitcoin. Accordingly, Pal shares the following assessment:
The business cycle is the coincidental factor for the Ethereum/Bitcoin pair. So when the ISM starts to rise, ETH starts to outperform Bitcoin. Why does this happen? This is a function of the ISM’s confidence in the economy, disposable income, or free cash flow from businesses. The higher the ISM, the more money people have, the better they feel, and the more confidence they have. The business cycle is better. We’re earning a little bit more. Our businesses are doing better, we’re making a little bit more profit. And we turn those profits into investments and we go further up the risk curve, which will be Ethereum.
‘According to my basic scenario, this will break!’
The former Goldman Sachs executive notes that ETH/BTC is also forming a bullish wedge on its weekly chart. Pal said, ‘This is another wedge. This is the ETH/Bitcoin weekly cross. Look at the big picture. ETH is basically at the level it was in 2017 against Bitcoin. It has maintained its value over time, which is very important. It shows that this thing is around and it’s here to stay.’ From this, Pal concludes:
What we’re doing right now is bouncing off the lower channel as the ISM is about to rebound and either breaking this wedge, which is a big deal, because that means ETH outperforms Bitcoin even more, or we stay in this wide range but reach the top of the range. My base case scenario is that it breaks and ETH outperforms.
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