After switching to PoS, ETH crossed $1,500 for the first time

Bloomberg exchange strategist Mike McGlone said that the successful transition of the Ethereum network to Proof-of-Stake is the basis for a steady increase in the price of the second most popular cryptocurrency. On Wednesday, October 26, ETH crossed the $1,500 mark for the first time since The Merge.

Market participants expect that amid the switch to PoS, Ethereum will be a deflationary asset that will attract large investors. However, CoinShares analysts note that The Merge has not yet contributed to the inflow of investments into the crypto market. In addition, after the transition to PoS, the altcoin showed a decline, like most cryptocurrencies.

Mike McGlone believes that the rise in the price of Ethereum may not only be affected by the recent transition amid the global energy crisis. Many developers prefer the ETH network when building DeFi applications.

Ethereum smart contracts are also gaining popularity in the financial sector, which can also become a prerequisite for the growth of the crypto coin. McGlone pointed out that ETH is “trading at a discount” during a sustained bull market.

“As of October 25, the Ethereum price is about 70% lower than during the peak of 2021. But it is about four times higher than the 2020 average. This indicates the characteristic volatility of an emerging asset and technology with a common prerequisite for drawdowns, which most often follow record highs,” the expert noted.

And the founder of Cardano, Charles Hoskinson, recently suggested that the SEC, after the recent transition of Ethereum to PoS, may regard the altcoin as an unregistered security.

“Now it’s a Proof-of-Stake… and then maybe now it’s a security. Who knows?” he said.

Hoskinson believes regulators need “some guidance” on how cryptocurrencies should be classified. At the same time, the expert criticized the existing system of compulsory regulation.

“It upsets me because I just want to know what the standards are,” Hoskinson said.

The status of Ethereum has been discussed for many years. However, recently the head of the CFTC, Rostin Benham, confirmed that ETH is a commodity along with BTC. In turn, SEC Chairman Gary Gensler has so far refrained from making loud statements on this matter.

What do you think about it?