Will Ethereum (ETH) Price Hit ATH in 2023? Here’s What Analyst Raoul Pal Predicts

In a recent blog post, Pal, a former Goldman Sachs executive, highlights the strong performance of the Nasdaq-100 Index (NDX) and its correlation to Ethereum’s potential growth.

Pal predicts that within the next five months, the NDX, driven by emerging trends like artificial intelligence (AI) and a weakening dollar, will reach new all-time highs alongside Ethereum. Comparing the NDX to a beach ball held underwater, Pal suggests that it will inevitably outperform, just as it did in 2019. 

ETH to Repeat History, Only if the Dollar Weakens? 

The NDX’s upward trajectory is supported by the debasement of the dollar and long-term secular trends. Pal argues that the weakening of the US dollar index (DXY) will likely continue, breaking its support at 100 in the coming months. Such a development could boost the performance of risk-on assets, including Bitcoin (BTC) and other cryptocurrencies.

While Ethereum is currently trading at $1,880 with a 1% increase over the last 24 hours, it previously reached an all-time high of $4,878 on November 10th, 2021. Pal’s analysis suggests that the positive momentum will drive Ethereum to new record levels. 

“Remember: NDX = Debasement + Secular trend.”

Notably, Pal’s macro outlook at Global Macro Investor (GMI) indicates that the broader symmetrical triangle pattern will likely persist, with a break below 100 in the DXY potentially leading to a target of 90. This expected weakening of the dollar aligns with a supportive environment for risk assets, making it advantageous for cryptocurrencies and other investment options.

However, he also emphasizes that while dollar weakness is not the sole factor influencing risk assets and crypto markets, it has historically played a significant role. Considering the overall landscape, the declining dollar serves as a substantial positive for these markets.

At the time of writing, Bitcoin is valued at $30,367, showing a 0.7% increase in the last 24 hours. As Pal’s predictions unfold, market participants will closely monitor the performance of Ethereum, the NDX, and the weakening dollar for potential investment opportunities in the crypto space.