Former Goldman Sachs executive Raoul Pal has reaffirmed he is bullish on the second-largest cryptocurrency by market capitalization Ethereum ($ETH) going into the end of the year, saying he expects it to move up at least 100% until then.<\/p>\n
In a post shared on Twitter, Raoul Pal updated his comparison between Ethereum this year and bitcoin in 2017 to show that the correlation is so strong it \u201ceven nailed this sell-off\u2026 to the day and price,\u201d before adding he sees a rally for ETH starting \u201ctomorrow(ish).\u201d<\/p>\n
The former Goldman Sachs executive then followed up on his tweet pointing out that he does not expect perfection from the analysis, but believes \u201csomething like a 100% to 300% rally is highly probable into year-end.\u201d Pal added that noting is certain and that after that rally \u201cit\u2019s a tougher call but I think it possibly elongates and sees significantly higher prices.\u201d<\/p>\n
When asked to show a chart with a larger timeframe, Pal shared one that shows the correlation between Bitcoin in 2017 and Ethereum this year has been going on since at least June of this year.<\/p>\n
As CryptoGlobe reported, Pal has predicted Ethereum\u2019s price could go to $20,000 \u201cthis cycle\u201d based on Metcalfe\u2019s Law. Pal, who before founding macro economic and investment strategy research service\u00a0Global Macro Investor (GMI)\u00a0in 2005 managed a fund for Man GLG and worked at Goldman Sachs, has shown a model his team created to demonstrate Metcalfe\u2019s Law on the BTC network using active addresses and the cryptocurrency\u2019s price, as well as market capitalization.<\/p>\n
The mode revealed \u00a0Ethereum looks like BTC in its early days, based on the growing number of active addresses. Metcalfe\u2019s Law, it\u2019s worth noting, states the effect of a network is proportional to the square of the number of nodes in said network. \u00a0Pal then added charts showing that Ethereum\u2019s growth is very similar to that of BTC and that Metcalfe\u2019s Law \u201cseems to be the key to price for both ETH and BTC.\u201d<\/p>\n
Pal has been predicting Ethereum\u2019s rise to $20,000 even since the cryptocurrency was trading at $1,230 earlier this year, before it broke through its early 2018 high of $1,400 to get near the $5,000 mark this year.<\/p>\n
Last month, Pal said he is \u201cmore than irresponsibly long ETH right now,\u201d even adding leverage to his position on the second-largest cryptocurrency by market capitalization. At the time, he said it\u2019s \u201cby far and away\u201d the largest personal position he has had in his entire life, with a time horizon for the trade between six and nine months.<\/p>\n