I had always thought

[EngLearner]

In the office building where John works, there's a picture on the wall in his room that he thinks is painted on paper. It's hung there for as long as John can remember. John's colleague takes the picture off and puts it on John's table. John takes it and discovers that it's painted on wood rather than paper. He's surprised and says the following to his colleague:

1. I'd always thought it was painted on paper, but now I see that it isn't paper.
2. I always thought it was painted on paper, but now I see that it isn't paper.

Is either version correct in the context given?

 

[Piscean]

Either is possible.