Macro expert and Real Vision CEO Raoul Pal sees Ethereum (ETH) on the brink of a significant shift. During a recent YouTube strategy session, he pointed out that the leading smart contract platform is forming a bullish wedge pattern on its weekly chart, which could lead to a major breakout soon.
In his analysis, Pal states, “The weekly chart of Ethereum hasn’t yet broken out, but it’s very close. So whether we break out this month, which is my hunch, and then maybe retest in the January pullback from liquidity, or we pull back here for a bit and then explode through afterward, either way, that chart, that wedge pattern, to me, is one of the most powerful patterns in all of crypto and suggests we’ve got a very big move in Ethereum to come.”
Pal doesn’t stop there. He believes that the performance of Ethereum against Bitcoin (ETH/BTC) could significantly rise, driven by trends in the ISM Manufacturing Index, which serves as a barometer for the health of the US economy.
“The business cycle is the coincident factor for the Ethereum/Bitcoin cross. So that says as the ISM starts rising, ETH starts outperforming Bitcoin. And why is that? Well, it’s a function of ISM being confidence in the economy, disposable income, or free cash flows from businesses. People have more money and feel better and have more confidence as the ISM goes up. The business cycle’s better. We’re earning a bit more. Our businesses are doing better; we’re making a bit more profit. And we recycle those profits into investments, and we go further out on the risk curve, which would be Ethereum.”
Further reinforcing his perspective, Pal notes that ETH/BTC is also showing a bullish wedge on its weekly chart. He highlights the larger picture: “ETH is basically at the same level versus Bitcoin that it was in 2017. It has held value over time, which is very important. It shows that this thing is around and it’s here to stay. So what we’re doing is bouncing off the bottom channel now, just as the ISM is about to pick up, and we either break that wedge, which is a big deal, because that would be ETH outperforming Bitcoin even further, or we stay in that larger range but get to the top of the range. My base case is we breakout and ETH outperforms.”
As of now, ETH/BTC is trading for 0.03501 BTC ($3,354).
Stay informed and get updates directly to your inbox by subscribing to alerts. Keep connected with us on X, Facebook, and Telegram for the latest insights.
Disclaimer: The views expressed in this article are for informational purposes only and should not be considered investment advice. Investors are encouraged to conduct their own research before making decisions regarding Bitcoin, cryptocurrency, or digital assets. Any transactions or trades are made at your own risk, and the responsibility for any losses incurred lies solely with the investor. The Daily Hodl does not endorse buying or selling any cryptocurrencies or digital assets and does not function as an investment advisor. Please note that The Daily Hodl engages in affiliate marketing.
