With the rise of Ethereum (ETH) prices last week, it seems that the cryptocurrency may be inching closer toward a consolidation phase, according to asset management firm IDEG’s chief investment officer.
In a report shared by Markus Thielen, he said he has been bullish about ETH for the past few weeks, but now he is cautious.
According to him, he came to this conclusion after considering price action and various macro factors. One of the factors is that the Fed continues to “ramp up its Quantitative Tightening (QT) program, which drains liquidity, and that ETH’s prices had reached technical resistance at around $1,800.
The crypto market experienced several setbacks over the last week, with Ethereum falling 47%, TVL decreasing, and USDC seeing $1.1 billion flow out of its ecosystem.
IDEG chief investment officer Markus Thielen also noted that the fundamental changes had not supported the recent price rally. He also believes that the recent hype around “Ethereum merge” is now experiencing a downward trend, as shown by Google search data.
The “Merge fatigue” also indicates that ETH is set for a consolidation period before the upcoming Merge on September 19. But, Thielen also added that this might open up doors for more buying opportunities:
“Ideally, a drop into the end of August would set us up for another great entry-level.”