SEC's Gensler Deserves Increased Congressional Scrutiny Regarding Crypto Regulation: U.S. Senator
DAI Stablecoin Achieves Over $5 Billion Market Cap Due to Increased Yield and Elevated Spark Protocol Influence
Republican Legislators Call for Gensler to Explain SEC Approval Process for Prometheum
The chief investment officer of asset management company IDEG believes that the price of Ether (ETH) has stabilized after a spike last week.
The author of the research, Markus Thielen, stated in a report shared with Cointelegraph on Monday that after being bullish on ETH pricing six weeks ago, he has since become "conservative."
The Fed continues to "ramp up its Quantitative Tightening (QT) policy, which drains liquidity," according to the thesis, which was based on macroeconomic considerations and price analysis of the cryptocurrency. It was also noted that ETH prices had encountered technical resistance at about $1,800.
The asset management company added that this occurred at the same time that Ethereum's network revenue fell by 47 percent, total volume locked (TVL) decreased, and the market capitalization of stablecoins dropped as well, with USDC losing $1.1 billion over the previous week.
Markus Thielen, chief investment officer at IDEG, stated in an interview with Cointelegraph on Tuesday that there hasn't been a change in fundamentals to back the recent price surge.
Additionally, according to current Google search data, Thielen thinks there is a declining trend in the buzz around the Ethereum Merge.
Source: “Ethereum Merge” Google trends results: Google, IDEG Research.
This "Merge weariness," according to Thielen, suggests that ETH is preparing for a period of consolidation before the impending Merge on September 19. However, Thielen also noted that this might create more options for purchasing:
“Ideally, a drop into the end of August would set us up for another great entry-level.”
Thielen also commented on the interesting correlation between ETH price and Ethereum Merge Google search results that are currently at play:
“It is a good indicator for sentiment and interest, but it will eventually break down and become irrelevant. Nevertheless, it might offer some insights into timing current Ethereum's price change into the event.”
Following the Merge, Thielen is of the view that ETH price will be mostly influenced by how fast adoption rates increase:
“While gas fees might stay the same, the adoption curve might not rise initially as fast as many hope, this could make ETH slightly valued, when measured in pure cashflow terms”.
ETH is currently priced at $1,587 at the time of writing, down 6.24% over the last 24 hours.
----------
