Former BitMEX CEO Says Failed ETH Merger Will Cause Price Crash.
The merge, expected in mid-September, will turn Ethereum into a proof-of-stake.
Ethereum is overtaking the merged platform.
Former BitMEX CEO Arthur Hayes says Ethereum ETH/USD could crash if the expected merge fails. According to Hayes, the best time to short a cryptocurrency is on the verge of a PoS shift. They expect Ethereum to revisit $1,000 if the merge fails. The ex-BitMEX CEO recommends using put options to hedge against a bearish scenario.
In the event that the merge becomes successful, Hayes says that Ethereum could reach $5,000. He also expects the Fed’s monetary stance to have a major impact on the price. A less aggressive move by the US central bank would strengthen a bull case. Hayes says he still won’t sell his ETH stake in the merge.
Hayes’ comment comes as Ethereum is claiming new highs. At press time, the coin was trading at $1,875 after slipping from highs above $2,000. The price of ETH is up 10.72% in the past week. The gains reflect optimism around the PoS shift. The developers have already completed the final PoS merge on the Goerly testnet before the merge.
Ethereum meets resistance after latest gains
Source – TradingView
From a technical perspective, Ethereum has hit resistance at the $1,950 level. The weekly chart is still showing that the MACD line is above the moving average. This suggests a possible continuation of the bullish momentum. ETH is also about to clear above the 21-day EMA on the weekly chart.
Despite the resistance of ETH at $1,950, it is bullish. Investors should watch out for a breakout of $1,950 over the next few days. A retracement is also possible. The upcoming merge will trigger a bull price. Investors should also be wary of potential merger-induced volatility. On breakout the coin is a good buy.