Unlock Premium Data: Up to 50% Off InvestingProCLAIM SALE

Ethereum Price May Fall Heading into the Merge, Bank of America Warns

Published 29/08/2022, 11:14 pm
© Reuters
BTC/USD
-
ETH/USD
-
ETH/USD
-
BSC/USD
-
TRX/USD
-
AVAX/USD
-
SOL/USD
-

By Senad Karaahmetovic

Ethereum price may face further selling pressure heading into the Merge “as investors digest Merge implications and shift to a wait-and-see approach regarding future upgrades,” a Bank of America strategist.

“We expect blockchains like BSC, Tron, Avalanche and Solana to increasingly capture market share until Ethereum’s current headwinds are addressed,” the analyst said.

On the other hand, Bitcoin price is trading below the $20,000 mark again after three consecutive days of strong selling activity.

The world’s largest digital asset closed over 9% lower last week after the selloff was fueled by hawkish comments from Fed Chair Jerome Powell on Friday.

Although Bitcoin price is up about 1.5% today, despite futures extending selloff, the digital asset is struggling to return trading above the $20,000 handle. The analyst notes “uncertainty” as buying momentum fades.

“Our view is that risks related to a mild recession are likely discounted, but the potential for a hard recession (our macro colleagues expect S&P EPS to fall in 2023 and question the excitement around 8.5% inflation) may result in another risk asset correction including crypto/digital assets,” the analyst wrote in a client note.

The strategist notes that BTC exchange net outflows accelerated over the last 2 weeks “significantly” compared to the prior 3 weeks.

“Supply remains tight and continuous exchange net outflows indicate that investors continue to HODL (bullish). ETH saw its 3rd consecutive week of decelerating exchange net outflows,” the analyst added.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.