There seems to have been a turning point for certain digital assets, particularly Ethereum, despite the low U.S. GDP and high Fed Rate. Ethereum (ETH), the second-largest cryptocurrency in terms of market capital, is showing a strong rebound.
Ether is on a steady rise, reaching $1,774 at its current market price. It has brought about a new era for crypto assets, with even more remarkable developments within the sector.
Raoul Pal, an expert in crypto, believes Ethereum will experience continuous price growth above the $2,000 mark. 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. The token’s fundamentals remain formidable despite the upward movement.
Pal, an investment strategist, tweeted recently that cryptocurrencies are superior to other digital assets.
It is generally believed that macroeconomics is so poor that there should be another low or a retest of the lowest.
My suspicion is, however that MAX PAIN will be higher.
In case ETH falls below 1800, hedge funds will be scrambling for calls to purchase. They cannot afford to miss out. pic.twitter.com/VdotGywBDj
— Raoul Pal (@RaoulGMI) July 31, 2022
According to the macroeconomic expert, Ethereum’s performance is better than Bitcoin’s (BTC). He also mentioned that Merge will contribute to increasing the number of recent activities in the Ethereum Network.
Ethereum is showing a strong performance and can continue to grow as it surpasses the $1,500 psychological threshold.
This is because hedge funds bring more money to Ethereum. There is therefore potential for more Ether demand as the price reaches $1800. This could possibly push it past its psychological $2,000.
Ethereum Macro Conditions Might Lead to A Retest of Bottom Levels
Having experienced the crypto winter and macro conditions, the markets’ overall sentiment could retest bottom levels.
According to current polling, many crypto investors are cash-strapped and have sold their assets. Pal, a crypto expert, says that crypto is underweight for institutional, retail and hedge fund investors.
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.
An economist suggested that macro factors might influence price trends. Accordingly, the economist sees sharp corrections and price pumps following Merge.
Raoul Pal says that macro influences are a significant factor. Raoul Pal cited global M2, which is a money supply mechanism, as an example. The G2 will improve, which means that the liquidity in crypto markets will increase. 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.
Vitalik Buterin (ETHC co-founder) stated that the Merge was still to be priced in. Expert Pal believes that Ethereum has had a significant impact on the crypto market over the last three years.
Featured Image from Pexels. Chart by TradingView.com