Market
Why ex-Goldman strategist thinks Ethereum (ETH/USD) already bottomed out
An Ethereum (ETH/USD) bull run is around the corner, according to former Goldman Sachs strategist Raoul Pal. According to Pal, Ethereum likely bottomed out in June. He says that once liquidity gets in the market, the price will pump, with the analyst expecting ETH to outperform BTC.
When quizzed about the recent collapse of the crypto exchange FTX, the ex-Goldman guru says such times precede big price moves. He believes “the lows of despair are pervasive, as everyone loses their minds.” In his view, the Ethereum network keeps growing, which should be interpreted as a bullish catalyst.
The comments may not be received in the same quarters, going by popular crypto analyst Benjamin Cowen’s views. According to Cowen, ETH will likely hit $600. He refers to the 2018 drawdown of about 95% for ETH. In his view, if history repeats itself and ETH falls just 87%, it will be at $600 already. The analyst says the price is when ETH’s logarithmic regression band fits its “non-bubble data.”
Apparently, ETH trades at $1,289 as of press time. The level is slightly above key support of $1,230. Recently, the cryptocurrency traded near the June lows at $1,080. Should we see a further recovery?
ETH is recovering from support after the recent drop
Source – TradingView
On the daily chart, ETH is pushing from an oversold price below $1,100. The RSI reading has moved higher but remains below the midpoint. It shows there are still more sellers for ETH at the crucial support.
Will ETH proceed lower or higher?
Aside from the controversies of ETH’s bottom price, the token has shown resilience when crypto sentiment is right. ETH has always defended the June lows, underlining that investors see the price as attractive. That gives the cryptocurrency a real chance of recovering from the level.
On the flip side, the macro concerns continue to linger. We have seen tokens hitting new lows in the year after the FTX fiasco. In our view, a journey to below the June lows for ETH will be pegged to the macro developments. Positive sentiment will allow ETH price to stay elevated from the June lows.
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