Ethereum price could rise to $8,000 by year-end if the historical correlation with inflation expectations holds. This view is held by Goldman Sachs global markets managing director Bernard Rzymelka, according to Zerohedge.
He cited the observed since 2019 correlation between the two-year expected inflation rate and the Bloomberg Galaxy Crypto index. Ethereum’s weight in the latter is 40%, the same as Bitcoin. The remaining 20% goes to Litecoin, Bitcoin Cash, and EOS.
According to the chart, the expected-inflation indicator as of October 25 reached 2.86%, while the cryptocurrency basket index had not yet reacted to the latest surge.
“The latest spike in inflation expectations suggests potential for growth if the relationship of previous episodes holds (marked by grey circles). We see the prospect of a late-stage rally, with a future move to a long-term high”, according to the report.
On October 29, Ethereum updated a high above $4,400 as a tightening wedge.
For the expert, this is a signal either of exhaustion and a peak […] or the starting point of an accelerating rally on a break above. The latter scenario is supported by the fact that the RSI indicator has not yet reached overbought levels observed at previous market highs, he added.
As reported, billionaire Mark Cuban said that Ethereum has the greatest investment potential among leading digital assets.
The founder of the second-largest cryptocurrency, Vitalik Buterin acknowledged the superiority of his project over Bitcoin as a safe-haven asset.
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