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Ethereum (ETH) broke above the crucial $1,500 price threshold on October 26 for the first time since the success of the Merge Upgrade September 15.
In particular, Ethereum experienced an immediate downtrend following the Merge upgrade, which was expected to generate more interest in Ethereum after the network has 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 commodity strategist at Bloomberg Intelligence Mike McGlone Noted tweeted on October 26 that Ethereum’s dominance at the center of the digitalization of banking and money could serve as a 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 can provide the basis for sustained price appreciation.” , did he declare.
McGlone added:
“Ethereum appears discounted in a sustainable bull market. The fact that the price on October 25 is down about 70% from the 2021 peak, but about 4 times above the 2020 average, shows the typical volatility of an asset/nascent technology with a common precondition for pullbacks – they most often follow highs.
More than 20 billion dollars are injected into Ethereum in 24 hours
Given the asset’s recent bullish move, Ethereum has seen more than 20 billion dollars to enter its market capitalization in less than 24 hours, from $164.42 billion on October 25 to $185.06 billion on October 26.
Currently, the Challenge 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 previous week, according to data acquired by finbold.
Notably, the circulating supply of Ethereum has declined since the merger, with the asset slowly becoming deflationary.
Let’s assume the historical trends of 2016-2017 are an indicator. In this case, Ethereum could be one of the biggest bull markets in the history of the crypto industry, according to a tweet published by pseudonymous crypto analyst Mustache October 11.
To finish, investment giant Fidelity recently announced plans to offer institutional users access to Ethereum transactions, allowing them to buy, sell and transfer the asset starting Oct. 28, in a move prompted 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. When you invest, your capital is at risk.
