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, according to Markus Thielen from management company IDEG.
According to the expert, the growth prospects of the second largest crypto by market cap have become less optimistic compared to the situation six weeks ago.
As a justification, he has pointed to the reduction in Fed liquidity as part of the so-called “quantitative tightening” and the achievement of resistance by Ethereum price at around $1,800.
The IDEG representative has also noted a 47% drop in miner revenue in July, a decrease in TVL in DeFi protocols, and a $1.1 billion decline in USDC capitalization last week. Thielen has said that Ethereum’s price bounce is not backed by an improvement in fundamentals.