He shared his views on Ethereum (ETH) with Mike McGlone, senior commodity strategist at Bloomberg Intelligence. According to the successful analyst, it is possible that Ethereum’s transition to PoS is a factor to sustain the altcoin price increase.
“Leading altcoin discounted in a persistent bull market”
cryptocoin.com As you followed, Ethereum (ETH) successfully completed the Merge upgrade on September 15th. It broke above the crucial $1,500 price threshold today for the first time since then. 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, after the Merge upgrade, Ethereum experienced a sudden downward trend in interest.
Mike McGlone, who makes accurate Bitcoin predictions, discussed the benefits of the exchange on Twitter on October 26. Check out this article for the analyst’s successful forecasts. 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. About 70% below the 2021 peak of the price on October 25th. But being nearly 4x above the 2020 average demonstrates the typical volatility of an emerging asset/technology, 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. Thus, it has seen 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.
Notably, the circulating supply of ETH has been declining since it gradually became deflationary with Merge. Suppose the historical patterns from 2016-2017 are any indication. In this case, crypto analyst Mustache suggested in a post on Oct. 11 that Ethereum is likely to enter one of the biggest bull markets in the history of the crypto industry. Meanwhile, investment giant Fidelity recently announced plans to provide institutional users with access to Ethereum transactions.
“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.
What Stops #Ethereum From Outshining #Bitcoin, #Stocks? Ethereum's successful transition to proof-of-stake amid the global energy crisis and its dominant position at the epicenter of the digitalization of finance and money may be a foundation for enduring price appreciation. pic.twitter.com/mbVo8XbNwg
— Mike McGlone (@mikemcglone11) October 26, 2022
In the chart above, McGlone shows that Ethereum has the potential to establish a footing around its 2018 peak, where global liquidity is over 14% as opposed to the current -5%.
What stops Ethereum?
It seems like Ethereum has a better chance of converting Bitcoin after the transition of blockchain to PoS consensus. 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 data, with 63% of all ETH validators already acting in compliance with OFAC. Such decisions are not popular among true crypto enthusiasts. However, that probably won’t stop Ethereum from being the number one blockchain. However, they are definitely tipping the scales in favor of Bitcoin.
