The Expert Predicted The Consolidation Of The Price Of Ethereum Against The Backdrop Of The MergeAdmin
The price of Ethereum could enter a consolidation phase after a sharp increase in July amid expectations of migration to the Proof-of-Stake consensus algorithm. Markus Thielen stated this 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 justification, 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 47% drop in miner revenue in July, a decrease in TVL in DeFi protocols, and a $1.1 billion decline in USDC capitalization last week. Thielen said that an improvement in fundamentals does not back Ethereum’s price bounce.
The expert predicted that the current phase of consolidation will continue until The Merge, which is expected to be activated on September 19.
“Ideally, a fall before the end of August would set us up for another great entry into the entry level,” the specialist said.
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 remain the same, the adoption curve may not rise as fast initially as many expect. This may result in a slight revaluation if measured in terms of net cash flow, ” he explained.