A prominent crypto analyst, Pentoshi, has recently revised his views on two prominent blockchain platforms: Ethereum (ETH) and Solana (SOL).
The analyst’s revised perspective has received a lot of attention within the crypto community. Read on to know why.
Ethereum’s bullish signal
He addresses his 694,700 Twitter followers, Pentoshi highlights a convincing bullish signal for Ethereum. He emphasized that the share of Ethereum that has been staked, indicating locked smart contracts used for participating in various protocols and earning rewards, has exceeded the amount available on centralized exchanges. Pentoshi believes this shift could potentially lead to a price increase for Ethereum.
There’s more now $ETH staked, than there is available on CEXs
“But why not price up”
There comes a time when all the people who wanted to sell are sold and the balance slowly shifts, then all of a sudden
I’m still understaffed. Gib 6 months 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 rise. He explains that a tipping point is reached when those who intended to sell have already done so, gradually shifting the balance between supply and demand. This process can eventually lead to a significant increase in price.
What Causes the Ethereum Surge?
pentoshi points from other factors that could be contributing to Ethereum’s rally. Ethereum has implemented a burn mechanism, which occasionally causes the token to become deflationary. This means that over time, the total supply of Ethereum could decrease as tokens are permanently withdrawn from circulation.
Read more: Ethereum founder Vitalik Buterin surprisingly faces rival Solana amid SEC attack
He believes Ethereum’s new “fundamentals” and Bitcoin’s upcoming halving could create an attractive environment for Ethereum’s rise. As Ethereum becomes more and more used in on-chain trading and part of the supply is deployed, deflation could drive prices up.
Solana’s Potential Dip in July?
By shifting its focus to Solana (SOL), currently the 10th largest cryptocurrency by market capitalization, Pentoshi offers a contrasting view. He suggests that Solana could experience a price drop between July and September.
While the analyst acknowledges the possibility that Solana’s price will fall during the third quarter, too highlights the prevailing sentiment of some individuals who may prematurely reject the cryptocurrency. This recognition underscores the resilience and potential for Solana’s long-term outlook, despite the expected short-term dip.
A lack of clarity
In conclusion, the crypto analyst presents a mixed outlook for Ethereum and Solana. Ethereum’s rise in staking and deflationary characteristics make for an optimistic outlook, while Solana could take a temporary dip before potentially recovering and showing its underlying strength.
What is your take on these bold predictions? Tell us