Experts from the over-the-counter cryptocurrency platform Cumberland said that the rally in Ethereum in July 2022 was due to fundamental factors, noting the growing interest of customers in the asset.

“While recent price movements have been technical and largely macro-correlated, in recent [ралли] On July 6, the Sepoila testnet was successfully transferred to Proof-of-Stake, laying the groundwork for the mainnet migration in the early fall, analysts said.

Cumberland emphasized that the emergence of a highly profitable and deflationary asset with a large capital is “an extremely important event for users and investors”. The company also noted that the transition of Ethereum to PoS will reduce the negative impact of the blockchain on the environment.

“We’re watching the stream [реаллокаций портфелей в ETH] Via our API and OTC chart: the buy-to-sell ratio has changed a lot in the last week and the buyers were corporate companies,” he said.

According to analysts, the announced change reflects the incentive structure of any volatile asset. They explained that it is easier for traders and investors to buy with a “rebound” rather than a local bottom.

Experts emphasized that price fluctuations for young technology products are quite normal. In their view, this is due to the relatively low liquidity of the market and the fact that users are still “evaluating the role” of Ethereum and decentralized applications based on this blockchain.

According to CoinGecko, Ethereum has increased by almost 35% over the past seven days. At the time of writing, the asset is trading around $1,500.

Recall that in July 2022, Ethereum developers agreed on a program to switch the network to PoS. The migration is tentatively scheduled for September 19.

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