March 29, 2024

The expert predicted the consolidation of the price of Ethereum against the backdrop of The Merge

The expert predicted the consolidation of the price of Ethereum against the backdrop of The Merge

Ethereum price could enter a consolidation phase after a sharp rise in July amid expectations of migration to the algorithmProof-of-Stake consensus. This was stated by Markus Thilen from the management company IDEG, writes Cointelegraph.

According to the expert, the growth prospects of the second largest cryptocurrency by capitalization have become less optimistic compared to the situation six weeks ago.

As a rationale, the expert pointed to the reduction in Fed liquidity as part of the so-called “quantitative tightening” and the achievement of resistance by Ethereum quotes at around $1,800.

An IDEG representative also noted a decline in revenueof miners by 47% in July, a decrease in TVL in DeFi protocols, and a reduction in USDC capitalization by $1.1 billion last week. Ethereum's price bounce is not backed by an improvement in fundamentals, Thielen said.

The expert predicted that the current phase of consolidation will continue until The Merge, which is expected to be activated on September 19th.

“Ideally, a drop before the end of August would set us up for another great entry-level entry.”- said the specialist.

According to Thielen, in the future, the dynamics of the price of Ethereum will depend on the pace of popularization of the second largest cryptocurrency by capitalization.

"While gas fees may remainAs before, the adoption curve may initially not grow as fast as many expect. This will result in a marginal revaluation when measured in terms of net cash flow.”- he explained.

Let's remember that Glassnode doubted the continuation of Ethereum's recovery rally, pointing to unconvincing on-chain indicators. 

Coinbase previously opened up Ethereum staking to institutional clients.

The Merge: what to expect from the biggest update of Ethereum


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