Market Sentiments Shift
After a week that saw Ether prices soaring, the giddy highs of crypto have been met with a dose of caution from IDEG’s chief investment officer, Markus Thielen. He recently stated that while he was riding a bullish wave six weeks ago, it’s time for him to don the caution cap, at least for now. A classic twist in the crypto saga!
The Influence of Macro Factors
Thielen’s skepticism isn’t baseless. The Federal Reserve’s ongoing Quantitative Tightening (QT) program can be likened to a tightening belt on an overindulgent consumer; liquidity is draining fast! Crypto traders, brace yourself: ETH has hit a technical resistance point around $1,800. Think of it like a virtual wall — and we all know how much fun it is when walls get in the way.
Decreasing Revenue and Liquidity
As if the price barriers weren’t enough, Ethereum has experienced a 47% drop in network revenue recently. That’s like ordering a large pizza and being served a single slice — disappointing, to say the least. Coupled with a dip in total volume locked (TVL) and the stablecoin market cap, ETH’s current outlook seems a tad shaky. What’s worse? USDC saw a whopping $1.1 billion in outflows over the past week, leaving a sense of uncertainty in the air!
Merge Fatigue?
The hype surrounding the Ethereum Merge seems to be dwindling, according to Thielen. Google search data reflecting this
