Raoul Pal, a former executive at Goldman Sachs, says that there is one Ethereum chart (ETH) that traders should be aware of.
A new analysis shows Pal pointing to the “Ethereum Today vs.2017-2021 Analog” chart. This would indicate that ETH is near the bottom of the bear market.
“Obviously price analogs don’t always work out perfectly but it’s something to keep an eye on.”
At the time of writing, Ethereum traded at $1270. In the last 24 hours, Ethereum has risen nearly 1.99% to rank second in crypto assets by market capital.
Source: Global Macro Investor
An analyst also examines a chart that he believes shows extreme bearish sentiment among stock market investors.
“Additionally to that, literally everyone is already bearish; the chart speaks for itself and dates back as far as 1970.”
Pal seems to suggest that it may be stuck in the middle of a bottoming process. This is based on the historical correlation it has had with market sentiment over the past 50 years.
Pal is certain that a recession is imminent, but he believes the economic downturn can be the catalyst for policymakers to loosen monetary policies.
“What we don’t agree on is the severity of the recession (ISM could easily reach 40), but rather the length of the recession. We see the opposite of what the consensus envisions.
We believe that financial conditions are likely to improve in the near future.
Financial conditions in the U.S. are as tight as during the Global Financial Crisis (+4 standard deviations), and inflationary pressures have already begun to ease. As market prices peak, Fed hawkishness, bond yields and the dollar are falling. Credit spreads will not explode like in 2008.”
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Chris Munch is a professional crypto writer, researcher, and journalist with extensive experience in the cryptocurrency and blockchain space. With a passion for innovation, Chris brings a unique and insightful perspective to the world of crypto and blockchain. He has written numerous articles and research papers on a variety of topics, including market analysis, investment strategies, and the latest developments in the industry. With a background in finance and economics, Chris has a deep understanding of the economic and financial forces that drive the crypto market. He is constantly researching and studying the latest trends and technologies, ensuring that he is always up-to-date on the latest developments in the industry. Chris’ writing is characterized by his ability to explain complex concepts in a clear and concise manner, making it accessible to a wide audience of readers. In addition to his writing, Chris is also a sought-after speaker and commentator on crypto and blockchain-related topics. He has appeared on numerous podcasts, webinars, and other events, sharing his knowledge and expertise with audiences around the world.
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