ETH May Consolidate As Merge Excitement Dies, Expert Says

Singaporean asset manager IDEG's Markus Thielen thinks ETH could be heading for a consolidation phase, getting "cautious" on cryptocurrency.

After a surge in Ether (ETH) prices last week, the cryptocurrency may now be entering a consolidation phase, says the chief investment officer of asset management firm IDEG.

In a report shared with Cointelegraph on Monday, report author Markus Thielen said that while he was bullish on ETH prices six weeks ago, he has now become “cautious”.

The thesis was based on macro factors and cryptocurrency price analysis, noting that the Fed still continues to “accelerate its liquidity-draining quantitative tightening (QT) program,” while also noting that ETH prices had reached technical resistance at around $1,800.

The asset management firm also noted that this came as Ethereum saw a 47% drop in network revenue, a decrease in total locked volume (TVL), and there are There was also a decline in stablecoin market capitalization, with USDC registering $1.1 billion. release over the past week.

Speaking to Cointelegraph on Tuesday, IDEG Chief Investment Officer Markus Thielen noted that the recent price rally has not been supported by a change in fundamentals.

Thielen also believes that the hype surrounding the Ethereum merger is currently on a downward trend, as shown by recent Google search data.

Source: Google "Ethereum Merge" Trending Results: Google, IDEG Research.

Thielen suggested that this "merger fatigue" indicates that ETH is set for a period of consolidation ahead of the upcoming September 19th merger. But, Thielen also added that it could open doors to more buying opportunities:

"Ideally, a drop at the end of August would allow us to have another excellent entry level."