Cryptos

Ethereum plodding in consolidation phase: Markus Thielen. – Entmetrics

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IDEG Chief Investment Officer Markus Thielen believes that Ethereum could now enter a consolidation phase. After being bullish on the world’s second most popular cryptocurrency six months ago, it has now turned cautious. Thielen’s report is based on macro factors and Ethereum price analysis. He noted that the Fed continued to accelerate its quantitative tightening (QT) program and that ETH prices reached technical resistance at $1,800. IDEG pointed out that this comes as Ethereum saw a 47% drop in network revenue, a drop in total volume locked (TVL), as well as a decrease in stablecoin market capitalization – USDC recorded an outflow of $1.1 billion in the past week. The expert said that Ethereum‘s recent price rise was not supported by a change in fundamentals. Thielen thinks the hype around the “Ethereum merger” is trending down. This shows that the cryptocurrency is set for a period of consolidation ahead of the upcoming September 19 meltdown and could open doors for more buying opportunities. He said a drop at the end of August would prepare another excellent entry level. IDEG’s Chief Investment Officer shed light on the correlation between Ethereum price and Google Ethereum Merge search results. He said it’s a good indicator of sentiment and interest that will eventually break down and become moot. However, it might offer some insight into when the current Ethereum price will change in the event. Thielen said the price of Ethereum will be influenced primarily by how quickly adoption rates increase. Gas charges may stay the same and the adoption curve may not rise as quickly as expected. Measured in terms of pure cash flow, this could make Ethereum value slightly.

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