Ethereum (ETH) is on the verge of a significant movement, according to Raoul Pal, a prominent financial expert and CEO of Real Vision. Pal highlighted the formation of a bullish flag pattern on Ethereum’s weekly chart, indicating an imminent price jump. He noted that although the weekly chart for Ethereum has not yet broken, it is very close. This pattern is considered a strong signal in the cryptocurrency market and suggests a significant movement.
Pal also pointed out that Ethereum is displaying a similar bullish flag formation against Bitcoin (ETH/BTC). This pattern demonstrates Ethereum’s ability to maintain its value over the long term, indicating a potential significant movement. Currently, ETH/BTC is trading at 0.03501 BTC ($3,354). Pal mentioned that Ethereum is at the same level as in 2017 and expects it to maintain its value over time. When this pattern breaks, it is likely that Ethereum will outpace Bitcoin.
Pal emphasized that if ETH/BTC moves upward from its base channel, it could reach much higher levels. Alternatively, it may trade within a wider range, but the primary scenario anticipates an upward breakout for ETH, allowing it to advance against Bitcoin.
Another factor supporting Ethereum’s movement lies in the ISM Manufacturing Index, which measures the overall health of the U.S. economy. Pal explained that an increase in the ISM could enable Ethereum to outperform Bitcoin. This would result from confidence in the economy and businesses’ ability to generate free cash flow.
Pal forecasts that the price could explode following a potential retest stemming from liquidity in January. He advised investors to closely monitor both the technical and economic indicators related to Ethereum, as these analyses might present significant opportunities in the cryptocurrency market ahead.
