Institutional investors continue to bet on Ethereum and the price of ETH continues to rise

admin

The cryptocurrency liquidity provider Cumberland has said that institutional investors are betting on the second largest cryptocurrency by market cap, Ethereum (ETH)at a time when the cryptocurrency price has surged to outperform the broader market.

According to a Twitter thread attributed to Cumberland COO Johan Van Bourg, despite a recent pullback seen in Ethereum price, the cryptocurrency’s uptrend remains intact. According to Cumberland, while ETH’s price action has been technical and highly macro-correlated in the recent past, its recent movement has been “crypto-fundamental.”

The liquidity provider noted that the Sepolia testnet successfully merged with Proof-of-Stake on July 6, setting the stage for a mainnet merger in early fall. «The Merge» describes the merging of the network’s current mainline with Beacon Chain’s PoS system, setting the stage for future scaling upgrades, including sharding. The move is expected to reduce Ethereum’s power consumption by 99.95%.

Tim Beiko, an Ethereum Protocol Support Engineer at the Ethereum Foundation, made a projection for the merger to happen in September in a PoS implementers call. Beiko has noted that Merge’s timeline is very likely to change over time.

Cumberland added that, barring any technical issues, the “emergence of a mega-cap, deflationary, yielding asset is a big deal” and noted that Ethereum’s move also “matters to participants who care about climate change.”

According to the firm, portfolio allocations to Ethereum are “barely oversubscribed” and “it doesn’t take much flow to move the needle”. That flow, he added, is being seen on its over-the-counter (OTC) trading desk, with long-term tilted buy/sell relationships.

The liquidity provider added that the change reflects that “it is always easier to buy a bounce than to catch the falling knife, and while volatility can be unpleasant, it is not without justification, as Ethereum is a world computer and cloud layer. overall settlement. with tremendous potential.”

Cumberland’s comments come at a time when Ethereum’s whales have started to accumulate more crypto as its price has risen over the past week, in part thanks to the projected date when the blockchain will merge. .

Ethereum price increased more than 50% in the last 30 days to outperform flagship cryptocurrency Bitcoin, which is up about 16%, according to data from CryptoCompare.

Source: CryptoCompare

According to on-chain analytics firm IntoTheBlock, as the price of Ethereum rose from around $1,050 to over $1,600 at the time of writing, ETH whales increased their rate of accumulation and now own over 22.4% of the circulating supply of cryptocurrency.

Notably, Ethereum’s move to $1,500 was in line with a prediction made by veteran crypto trader and market analyst Michael van de Poppewho predicted earlier this month that Ethereum could see a “significant run” if it breaks above its resistance of $1,140.

Meanwhile, a panel of 53 fintech experts on Finder revealed bullish price predictions for the future of the cryptocurrency, putting a year-end price target of $1,711 on average and predicting a rise to $5,739 by the end of 2025. from 2030, experts predicted that Ethereum could go up to $14,412.

Click to rate this post!
[Total: 0 Average: 0]
Next Post

Increase from the ECB, report lift and end of strike - the week's most important news

Last week Double increase and a successful CEO leaving – here are the most important news of the week Nordic Capital wants to buy back Cary Group, the Riksbank raised the key interest rate by 50 basis points to 0.75 percent, Ola Rollén’s position as CEO of Hexagon and the […]
Increase from the ECB, report lift and end of strike - the week's most important news

Subscribe US Now