Former Goldman Sachs executive Raoul Pal says there’s one Ethereum (ETH) chart that traders should keep on their radar.
In a new analysis, Pal points to the “Ethereum Today vs. 2017-2021 Analog” chart, which if followed, would indicate ETH is currently near the bottom of the bear market.
“Obviously, price analogs never work out perfectly, but it’s still something interesting to have on your radar.”
At the time of writing, Ethereum trades at $1270. The market capitalization of Ethereum is second, with a gain of nearly 1.99% over the last 24 hours.
An analyst also examines a chart that he believes shows extreme bearish sentiments among stock market investors.
“Additionally, literally EVERYONE is already bearish; this chart speaks for itself and dates back to 1970.”
Looking at the chart, Pal appears to suggest that the S&P 500 may also be close to bottoming out based on its historical correlation with market sentiment spanning over 50 years.
Pal believes that there will be a recession, but he thinks the economic downturn could provide the impetus for policymakers to relax their monetary policies.
“What we disagree on is not so much the magnitude of the recession (ISM could easily hit 40), but the duration of the recession itself. While consensus is still very much talking about an increase in financial conditions next year and therefore an entrenched global recession, we see the opposite happening…
Our leading indicators indicate that financial circumstances will begin to improve and possibly even significantly in the near future.
Financial Conditions (here inverted are tighter than they were during the Global Financial Crisis +4 standard deviations) while inflationary pressures are starting to ease. Bond yields and the dollar are down as the market continues to price in peak Fed hawkishness and, bar anything systemic and entrenched (not our base case), credit spreads are not going to blow out like they did in 2008.”
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Disclaimer: The Daily Hodl opinions are not intended to be used as investment advice. Investors are advised to do their homework before investing in high-risk digital assets, including Bitcoin and cryptocurrency. Your transactions and losses are your responsibility. The Daily Hodl doesn’t recommend any cryptocurrency or digital asset trading. The Daily Hodl does not participate in affiliate marketing.
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