Raoul Pal: Ethereum Price Could Be 20k
Ethereum reached a four-digit price level that it had not seen in a long time. Exceeding the $ 1000 level on January 4th. Raoul Pal suggested that the ETH could rise to 20 thousand dollars by showing that there is a relationship between Bitcoin and Ethereum.
CEO of Real Vision Raoul Pal claimed that price of Ethereum could rise to 20 thousand dollars. While supporting his claim, Pal pointed out the similarities seen between Bitcoin and Ethereum. CEO addressed Metcalfe’s law (Metcalfe’s law*) when explaining the relationship between the two cryptocurrencies.
- Metcalfe’s Law is a law known as the network effect. According to this law, the increasing number of users on a network linearly increases the traffic on the network. Adaptation of this to cryptocurrencies is based on the number of active users.
Ethereum = Bitcoin
Raoul Pal gave his explanation of some of the analyses prepared according to Metcalfe’s law. It showed a graph created primarily by the number and price of Bitcoin active addresses, noting that the relationship of active addresses to price constitutes the value of the network. Pal, who also demonstrated the same rule on the market value of Bitcoin, said that there is a similar parallel between price and market value.
Raoul Pal said Metcalfe’s Law achieved a fairly similar graphical appearance when applied to both Bitcoin and Ethereum. Pal then shared a chart showing only the relationship between the number of Ethereum active addresses and their price, commenting that “Metcalfe’s law may be the key factor indicating the price of BTC and ETH.”
Ethereum price chart in parallel view to BTC
After comparing BTC and ETH according to Metcalfe’s law, Raoul Pal touched on the actual similarity between both cryptocurrencies. Pal explained that while BTC and ETH’s active address numbers are at the same level, price charts are also on the same line.
Chart shows the relationship between Ethereum active address numbers as of June 2017 and Bitcoin active address numbers in 2013-2019 according to Metcalfe law. Looking at the chart, it seems that there is a price parallel between both cryptocurrencies.
According to the analysis, with price of Ethereum and Bitcoin progressing at exactly the same level, “Ethereum can increase to 20 thousand dollars in parallel with this cycle.” said. CEO recalled once again that similar cycles have been seen in Bitcoin.
Finally, Raoul Pal stressed that although Bitcoin and Ethereum are seen as different crypto assets, they have huge similarities.