Ethereum’s switch to PoS may be a factor for enduring ETH price appreciation


Ethereal (ETH) crossed the crucial price threshold of $1,500 on October 26 for the first time since the successful completion of the merge update September 15th.

In particular, Ethereum suffered an immediate downtrend after the Merge update, which was expected to generate more interest in Ethereal after the network officially transitioned to proof of stake (point of sale) and make ETH a deflationary asset and potentially attract institutional capital.

Discussing the benefits of change, senior product Bloomberg intelligence strategist Mike McGlone indicated on Twitter Oct. 26 that Ethereum’s dominant position at the center of the digitization of banking and money may serve as the basis for price appreciation.

“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 lay the foundation for lasting price appreciation,” he said.

McGlone added:

“Ethereum appears at a discount within an enduring bull market. That the price on October 25 is down about 70% from the 2021 peak, but about 4x above the 2020 average, shows the typical volatility of a nascent asset/technology with a common prerequisite for drawdowns: the most of the time they follow the maxima.”

More than $20 billion pumped into Ethereum in 24 hours

Given the asset’s recent bullish move, Ethereum saw over $20 billion flow to its market capitalization in less than 24 hours, from $164.42 billion on October 25 to $185.06 billion on October 26.

Currently, the DeFi The asset is trading at $1,518, up double digits on the day with a gain of 11.11% and another 16.75% over the prior week, according to data acquired by finbold.

In particular, the supply of Ethereum in circulation has been declining since the Merger and the asset has slowly become deflationary.

Let’s assume that historical patterns from 2016-2017 are an indicator. In that case, Ethereum could be in one of the biggest bull markets in the history of the crypto industry, according to a tweet published by the pseudonymous cryptanalyst Moustache on October 11.

Finally, investment Giant Fidelity recently announced plans to offer institutional users access to Ethereum transactions, allowing them to buy, sell and transfer the asset starting on October 28, in a decision that was spurred by the success of the network’s recent Merge upgrade.

Disclaimer: The content of this site should not be considered investment advice. The investment is speculative. By investing, your capital is at risk.