A prominent crypto analyst, Pentoshi, recently revised his perspective on two prominent blockchain platforms: Ethereum (ETH) and Solana (SOL).
The analyst’s revised perspective has garnered significant attention within the crypto community. Read on to know why.
Ethereum’s Bullish Signal
Addressing his 694,700 Twitter followers, Pentoshi highlights a compelling bullish signal for Ethereum. He emphasized that the proportion of Ethereum staked, indicating locked-in smart contracts utilized for participating in various protocols and earning rewards, has exceeded the amount available on centralized exchanges. Pentoshi believes this shift may potentially lead to a price appreciation for Ethereum.
There is now more $ETH staked, than there is available on CEX’s
“But why price not up”
There will come a point in time, when all the people who wanted to sell have sold and the balance shifts slowly, than all at once
I am still under-allocated. Gib 6 months of sideways please https://t.co/HBPjRL9xJZ pic.twitter.com/v7vYuDDCz4
— Pentoshi
euroPeng
(@Pentosh1) June 26, 2023
He further predicts that as the number of sellers decreases, the price of Ethereum is likely to experience an upswing. He explains that a tipping point will be reached when those who intended to sell have already done so, resulting in a gradual shift in the balance of supply and demand. This process may eventually lead to a significant price surge.
What’s Causing the Ethereum Surge?
Pentoshi points out other factors that could contribute to Ethereum’s rally. Ethereum has implemented a burning mechanism, which occasionally makes the token deflationary. This means that, over time, the total supply of Ethereum could decrease due to tokens being permanently removed from circulation.
Read More: Ethereum Founder Vitalik Buterin Surprisingly Stands with Rival Solana Amidst SEC Onslaught
He believes Ethereum’s new “fundamentals” and the upcoming Bitcoin halving could create an attractive environment for Ethereum’s rise. As Ethereum becomes increasingly utilized in on-chain trading and a portion of the supply is staked, deflation may drive prices higher.
Solana’s Potential Dip in July?
Shifting his focus to Solana (SOL), currently the 10th-largest cryptocurrency by market cap, Pentoshi offers a contrasting view. He suggests that Solana might experience a dip in its price between July and September.
While acknowledging the possibility of Solana’s price sliding during Q3, the analyst also highlights the prevailing sentiment of some individuals who might be prematurely dismissing the cryptocurrency. This acknowledgment underscores the resilience and potential for Solana’s long-term prospects despite the anticipated short-term dip.
A Lack of Clarity
In conclusion, the crypto analyst presents a mixed outlook for Ethereum and Solana. Ethereum’s surge in staking and deflationary characteristics create an optimistic outlook, whereas Solana might undergo a temporary dip before potentially recovering and showcasing its underlying strength.
What’s your take on these bold predictions? Tell us
