Goldman Sachs thinks Ethereum could climb to $ 8000 by the end of the year

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Ethereum price could rise to $ 8,000 by the end of the year if historical correlation with inflationary expectations persists. This point of view is shared by the managing director of global markets of the investment bank Goldman Sachs Bernard Rzimelka, writes Zerohedge.

He referred to the correlation observed since 2019 between the market estimate of inflation over a two-year horizon and the Bloomberg Galaxy Crypto Index. The weight of Ethereum in the latter is 40%, which is the same as that of Bitcoin. The remaining 20% ​​comes from Litecoin, Bitcoin Cash and EOS.

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Data: Goldman Sachs, ZeroHedge.

According to the graph, the expected inflation rate reached 2.86% by October 25, while the cryptocurrency basket index did not have time to react to the latest jump.

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“The latest spike in inflationary expectations suggests upside potential if the relationship between previous episodes continues (gray circles). We see the prospect of a late rally with a long-term high in the future, ”the report says.

Data: Goldman Sachs, ZeroHedge.

On October 29, Ethereum renewed its high above $ 4,400 in the form of a narrowing wedge.

For an expert, this is a signal “either a sign of depletion and a peak […] or a starting point for an accelerating rally on a break above. ” The latter scenario reinforces the fact that the RSI indicator has not yet reached the overbought levels seen at past market highs, he added.

Data: Goldman Sachs, ZeroHedge.

Earlier, billionaire Mark Cuban stated that Ethereum has the largest investment potential among the leading digital assets.

The founder of the second largest cryptocurrency by capitalization, Vitalik Buterin, admitted the superiority of his project over bitcoin as a defensive asset.

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