The expert predicted a flat ETH price against the backdrop of The Merge

The price of Ethereum could enter a consolidation phase after a sharp increase in July amid expectations of a migration to the Proof-of-Stake consensus algorithm. This was stated by Markus Thilen 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 a decrease in liquidity Fed within the so-calledquantitative tightening”and the achievement of Ethereum quotes resistance at around $1800.

An IDEG representative also noted a 47% drop in miner income in July, a decrease TVL in DeFi protocols and a $1.1 billion reduction in USDC capitalization last week. Ethereum’s price bounce is not backed by an improvement in fundamentals, Thielen said.

The expert predicted that the current consolidation phase will continue until The Merge, the activation of which expected September 19.

“Ideally, a drop before the end of August would set us up for another great entry-level entry.” – said the specialist.

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 will result in a marginal revaluation when measured in terms of net cash flow.” he explained.

Recall that in Glassnode doubted in the continuation of Ethereum’s recovery rally, pointing to inconclusive on-chain performance.

Previously, Coinbase opened staking opportunity Ethereum for institutional clients.

The price of Ethereum could enter a consolidation phase after a sharp increase in July amid expectations of a migration to the Proof-of-Stake consensus algorithm. This was stated by Markus Thilen 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 a decrease in liquidity Fed within the so-calledquantitative tightening”and the achievement of Ethereum quotes resistance at around $1800.

An IDEG representative also noted a 47% drop in miner income in July, a decrease TVL in DeFi protocols and a $1.1 billion reduction in USDC capitalization last week. Ethereum’s price bounce is not backed by an improvement in fundamentals, Thielen said.

The expert predicted that the current consolidation phase will continue until The Merge, the activation of which expected September 19.

“Ideally, a drop before the end of August would set us up for another great entry-level entry.” – said the specialist.

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 will result in a marginal revaluation when measured in terms of net cash flow.” he explained.

Recall that in Glassnode doubted in the continuation of Ethereum’s recovery rally, pointing to inconclusive on-chain performance.

Previously, Coinbase opened staking opportunity Ethereum for institutional clients.