Ethereum (ETH) is on the verge of a significant movement, according to Raoul Pal, a prominent financial expert and CEO of Real Vision. Pal has observed the formation of a bullish flag pattern on Ethereum’s weekly chart, indicating an imminent price jump. He stated, “The weekly chart for Ethereum has not yet broken, but it is very close. This pattern is a strong signal in the cryptocurrency market and heralds a significant movement.”
Pal also noted a similar bullish flag formation in the ETH/BTC chart, suggesting Ethereum’s ability to maintain its value over the long term. Currently, ETH/BTC is trading at 0.03501 BTC ($3,354). Pal commented, “Ethereum is at the same level as in 2017, and we see it maintaining its value over time. When this pattern breaks, it is likely that Ethereum will outpace Bitcoin.”
Pal emphasized that if ETH/BTC moves upwards 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, “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 predicts that the price could explode following a potential retest driven by 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.