Bloomberg Intelligence shared his views on Ethereum (ETH) to Mike McGlone, senior commodity strategist. According to the successful analyst, it is possible that Ethereum’s transition to PoS is a factor to continue the altcoin price increase.
“Leading altcoin discounted in a persistent bull market”
Koindeks.com As you follow, Ethereum (ETH) successfully performed the Merge upgrade on September 15th. For the first time since then, it broke above the precious $1,500 price threshold today. After Ethereum officially switched to the Proof-of-Stake (PoS) protocol, ETH became a deflationary asset. This, in turn, was expected to potentially attract institutional capital. However, following the Merge upgrade, Ethereum experienced a sudden downward trend in interest.
Mike McGlone, who makes accurate Bitcoin claims, discussed the benefits of the exchange on Twitter on October 26. Check out this article for the analyst’s successful claims. In this context, McGlone says it’s possible that Ethereum’s commanding position at the center of the digitalization of banking and money could serve as a basis for price growth. The analyst continues, making the following statement:
Ethereum appears to be discounted in a persistent bull market. It’s about 70% below the 2021 high of the price on October 25th. But being nearly 4x above the 2020 average demonstrates the typical volatility of an emerging asset/technology, which is a common prerequisite for declines. Most of the time they watch the highest levels.
Pumping over $20 billion into Ethereum
Considering the altcoin’s recent bullish action, Ethereum’s market cap increased from $164.42 billion on October 25 to $185.06 billion on October 26. As such, it saw over $20 billion in flow in less than 24 hours. At the time of writing, ETH is trading at $1,550, up 9.82% and 19.4% on a daily and weekly basis, respectively.
In particular, the circulating supply of ETH has been declining since it gradually became deflationary with Merge. Suppose the historical patterns in mid-2016-2017 are a random indicator. In this case, crypto analyst Mustache suggested in a post on Oct. 11 that it is possible for Ethereum to enter one of the biggest bull markets in the history of the crypto industry. In the midst of this, investment giant Fidelity recently announced that it plans to provide institutional users with access to Ethereum processes.
“Leading altcoin will follow new highs”
According to Mike McGlone, the successful transition of Ethereum to PoS lays a new foundation. In the analyst’s view, this foundation is now forming in the $1,000 region.
In the chart above, McGlone shows that Ethereum has the potential to establish a footing around its 2018 peak, where global liquidity is above the current -5% rather than 14%.
What stops Ethereum?
After blockchain’s transition to PoS consensus, Ethereum’s odds of converting Bitcoin are about to be higher. According to a number of crypto enthusiasts, the Ethereum network has become a more centralized, controlled network with the upgrade. This is also supported by new information that essentially 63% of all ETH validators act in compliance with OFAC. Such decisions in the midst of true crypto enthusiasts are not recognized. However, it probably won’t stop Ethereum from becoming the number one blockchain. However, they are surely tipping the scales in favor of Bitcoin.