Disclaimer: This article aims to convey more market information and does not constitute any investment advice. The article only represents the author's viewpoint and does not represent the official stance of MarsBit
Disclaimer: This article aims to convey more market information and does not constitute any investment advice. The article only represents the author's viewpoint and does not represent the official stance of MarsBit.
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Source: Cointelgraph Chinese
The Chief Investment Officer of asset management company IDEG stated that after last week's price surge, Ethereum may now be entering a consolidation phase.
In a report shared with Cointelgraph on Monday, Markus Thielen, the author of the report, stated that although he had been bullish on ETH prices six weeks ago, he has now turned to "cautious".
The report is based on macro factors and price analysis of cryptocurrencies, pointing out that the Federal Reserve is still "increasing its quantitative tightening (QT) program, which will deplete liquidity". At the same time, it points out that the price of ETH has reached a technical resistance level of around $1800.
The asset management company also pointed out that this was due to a 47% decrease in Ethereum's network revenue, as well as a decrease in total locked in value (TVL) and stable currency market value. USDC experienced an outflow of $1.1 billion in funds last week.
Markus Thielen, Chief Investment Officer of IDEG, pointed out in an interview with Cointelgraph on Tuesday that the recent price increases have not been supported by fundamental changes.
Thielen also believes that recent Google search data indicates that the hype surrounding the "Ethereum merger" is experiencing a downward trend.
Source: "Ethereum Merge" Google Trend Results: Google, IDEGResearch
Thielen believes that this' merger fatigue 'indicates that ETH will enter a consolidation period before the merger on September 19th. But Thielen also added that this may open the door to more buying opportunities:
The most ideal scenario is that the price drops to the end of August, and we will have another good level of entry
Thielen also commented on the interesting correlation between the current ETH price and Ethereum merging Google search results:
This is a good indicator of emotions and interests, but it will eventually break and become irrelevant. Nevertheless, it may provide some insights into when the current Ethereum price will change
Thielen believes that after the merger, the price of ETH will be mainly influenced by the growth rate of adoption:
Although gas fees may remain unchanged, adopting a curve may not initially rise as quickly as many people hope, which may result in ETH's valuation measured in pure cash flow being slightly lower
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