Bank of America: While the Merger Has Boosted the Price of Ethereum in the Short-Term, the Long-Term Outlook Is Still Not Optimistic

Ethereum ETH 0.34%’s price jump from mid-July to mid-August is likely to continue to fade as investors gain a better understanding of ethereum’s technical upgrade and future blockchain upgrades, Bank of America said in a report Friday. influences.

“Investors may realize that Ethereum’s transition to proof-of-stake (PoS) will not address scalability issues or high transaction fees,” Bank of America analyst Alkesh Shah wrote in a note to clients.

Traders stressed that while the consolidation may have driven Ethereum’s short-term price appreciation, the asset’s long-term outlook remains bleak given weak macroeconomic sentiment and Bitcoin BTC -0.13%’s technicals pointing to the downside.