It’s Eagle St., opposite what is now the Court of Appeals.
Palmer was raised in Albany (son Erastus Dow Palmer, a carpenter who turned sculptor and had great success). Palmer grew up on Columbia St. and the moved to Lafayette St. (since demolished to create Lafayette Park, in back of the Henry Building)
He was born in 1854, so that means he was 17 when he painted this.. which captures an Albany winter so well.
Friends of Albany History 