Ethereum Price May Fall Towards Merger

Ethereum's price could face further selling pressure heading into the Merger as "investors digest the effects of the Merger and shift to a wait-and-see approach regarding future upgrades," a Bank of America strategist said.

"We expect blockchains such as BSC, Tron, Avalanche and Solana to increasingly capture market share until Ethereum's current woes are addressed," the analyst said. On the other hand, the Bitcoin price is trading below the $20,000 level again after three consecutive days of strong selling activity. The world's largest digital asset closed last week down more than 9% after hawkish comments from Fed Chairman Jerome Powell on Friday fueled the sell-off. Although the price of Bitcoin is up about 1.5% today, the digital asset is struggling to continue trading above the $20,000 level, despite futures extending the sell-off. The analyst notes "uncertainty" as buying momentum wanes. "In our view, the risks associated with a mild recession are likely being ignored, 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) could cause another risk asset correction, including crypto/digital assets," the analyst wrote in a client note. The strategist notes that BTC exchange net outflows have accelerated "significantly" in the last 2 weeks compared to the previous 3 weeks. "Supply remains tight and sustained exchange net outflows suggest investors continue to HODL (bullish). ETH saw exchange net outflows slow for the 3rd week in a row." He added. Follow Global Economic Developments on Social Media! Click here to follow Ieconomy official Facebook account! Click here to follow Ieconomy official Instagram account! Click here to follow Ieconomy official Twitter account!