Markus Thielen, Singapore asset manager IDEG, believes ETH may be heading for a consolidation phase. He is “cautious” about the cryptocurrency.

According to IDEG, chief investment officer of asset management firm IDEG, the cryptocurrency could now be in consolidation mode after a spike in Ether ( E ) prices last Wednesday.

Markus Thielen, the report’s author, shared his thoughts with Cointelegraph Monday. He stated that while he was bullish about ETH prices six week ago, he is now “cautious.”

The thesis was based on macro factors as well as price analysis of cryptocurrency. It noted that the Fed continues to “rampup its Quantitative tightening (QT), program which drains liquidity”, while noting that ETH prices had reached technical resistance around $1,800.

This was due to Ethereum’s 47% drop in revenue and a decrease of total volume locked (TVL), as well as a decrease at the stablecoin market capital, with USDC seeing $1.1 billion in outflow over the past week.

Markus Thielen, chief investment officer at IDEG, stated that the recent price rise has not been supported fundamentally.

Thielen believes that the hype surrounding Ethereum Merge is currently experiencing a downtrend, as illustrated by recent Google search data.

Thielen said that this “Merge fatigue” indicates that ETH will be in a consolidation period before the Merge, which is scheduled for September 19. Thielen said that this could open up more buying opportunities.

“Ideally, we would see a drop in August to make us eligible for another great entry-level.”
Thielen also mentioned the intriguing correlation between Ethereum price and Ethereum Merge Google Search Results that are currently in play:

It is an indicator of sentiment and interest. However, it will eventually become insignificant. It might provide some insight into how current Ethereum’s prices change into the event.
Thielen, who is following the Merge, believes that ETH’s price will be largely affected by how quickly adoption rates rise.

“Gas fees may remain the same, but the adoption curve might not increase as quickly as many hope. This could make ETH slightly more valuable, when measured in cashflow terms.
ETH currently has a price of $1,587 as of the writing time, a drop of 6.24% in the last 24 hours.


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Angie Byrd