Ethereum price may enter the consolidation phase after a sharp rise in July amid prospects of transitioning to the Proof-of-Stake consensus algorithm. This was stated by Markus Thilen of IDEG management company, writes Cointelegraph.

According to the expert, the growth prospects of the second-largest cryptocurrency by capitalization have become less optimistic compared to the situation six weeks ago.

As a reason, the expert pointed to a decrease in liquidity fed As part of the so-called “quantitative tightening” and Ethereum prices gaining resistance around $1800.

An IDEG representative also noted a 47% drop in miner revenue in July. TVL $1.1 billion reduction in DeFi protocols and USDC capitalization last week. Thielen said that Ethereum’s price jump was not supported by an improvement in fundamentals.

The expert predicted that the current consolidation phase will continue until The Merge, which is expected to be activated on September 19.

“Ideally, a drop before the end of August prepares us for another great entry-level entry.” – said the expert.

According to Thielen, the dynamics of Ethereum price in the future will depend on the speed with which the second largest cryptocurrency is popularized by capitalization.

“While gas prices may remain the same, the adoption curve may not rise as quickly as many initially expected. This will result in a marginal revaluation when measured in terms of net cash flow.” explained.

Recall that Glassnode doubted the continuation of the Ethereum recovery rally, citing unconvincing on-chain indicators.

Coinbase previously opened Ethereum staking to institutional customers.

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