August 16, 2022


Arthur Hayes, the former CEO of BitMEX, predicts a massive rally for Ethereum (ETH) if two possibilities coincide.

In a new blog post, Hayes Says One of the catalysts that could spark a massive rally for Ethereum is the success of the upcoming shift to the Proof of Stake (PoS) consensus mechanism, which is set to launch in September.

The upcoming update will enable the Ethereum mainnet to integrate with its Beacon chain, which already runs the POS system. The merger, which will lead to Ethereum 2.0, aims to address network scalability issues by paving the way for future upgrades.

Should the Ethereum upgrade succeed, Hayes says another factor that could act as a tailwind for ETH is that the Federal Reserve is once again adopting loose monetary policies.

“Fed Pivot + Ethereum merger is successful (i.e. what I expect to happen, best case scenario for ETH). In November 2021, the Fed was printing money, coins were rallying, and attention was beginning to shift to the bullish narrative surrounding the merger. The next Ethereum in 2022. Therefore, I will use $5,000, the psychological barrier of Ether that was just below that time, as my price target for this scenario.”

At the time of writing, ETH is exchanging hands for $1,728. A move to Hayes’ upside target indicates an upside potential of around 200% for the leading smart contract platform.

If the Fed maintains tight monetary policy and Ethereum undergoes a successful transition to PoS, Hayes says the second largest crypto asset could rise to $3,562.

In the third scenario where the Ethereum-to-PoS transition fails and the Federal Reserve maintains tight monetary policy, Hayes says the price of ETH will drop significantly from current levels.

“There is no free money and no help from [Ethereum co-founder] Archangel Vitalik [Buterin] It takes us back to the dark ages. This will be the last drop to $1,081 – which is my price prediction for this scenario.”

In the fourth scenario where the Ethereum-to-PoS transition fails and the Fed eases monetary policies, Hayes says ETH will drop slightly to the $1,600 level.

Don’t miss out – sign up to get encrypted email alerts delivered straight to your inbox

Check price action

Follow us TwitterAnd the Facebook And the cable

Surf The Daily Hodl Mix

Check out the latest news headlines

& nbsp

Disclaimer: The opinions expressed in The Daily Hodl are not investment advice. Investors should perform their due diligence before making any high-risk investments in bitcoin, cryptocurrency or digital assets. Please be aware that your transfers and transactions are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend buying or selling any cryptocurrency or digital assets, and The Daily Hodl is not an investment advisor. Please note that The Daily Hodl is involved in affiliate marketing.

Featured image: Shutterstock / Voger Design





Source link

Leave a Reply

Your email address will not be published.