Analyst: the price of ETH will depend on the rate of widespread adoption of the crypto coin
The price of ETH may have gone into a consolidation phase after a major rise in July 2022 amid expectations of the network transitioning to Proof-of-Stake. This opinion is shared by Markus Thielen from the management company IDEG.
According to the analyst, there are growth prospects for ethereum, if we compare the market situation about 6 weeks ago. The IDEG representative explained this by reducing the liquidity of the Fed as part of the so-called “quantitative tightening” and an increase in the price of ETH at the level of $1,800.
In addition, the expert pointed to a decrease in the profits of cryptocurrency miners by almost 50%. At the same time, Thielen believes that the rebound in the price of the second most popular digital currency does not mean an improvement in the fundamental indicators of the market.
The analyst predicted the current level of consolidation up to The Merge, which is scheduled for September this year.
“Ideally, a fall before the end of August would set us up for another great entry into the entry level,” the specialist noted.
Thielen believes that in the future, the value of ETH will depend on the rate of widespread adoption of the cryptocurrency.
“While gas fees may remain the same, the adoption curve may not rise as fast initially as many expect. This will result in a slight revaluation when measured in terms of net cash flow,” he explained.
And Bank of America believes that the recent outflow of digital assets from exchanges and an increase in the inflow of net stablecoins indicate a bullish trend in the market. Analysts say that the decrease in the hype around sales eventually transformed into “buying”.
“Investors are leaving the scene as risky assets rise. Limited supply and continuous exchange net outflows indicate that investors are continuing to HODL,” Bank of America experts said.
At the same time, analysts are confident that investors have already adapted to the current macroeconomic changes and are ready to return to risky territory.
