The ex-head of the BitMEX cryptocurrency exchange, having studied the economic situation before the Ethereum merger, sees two scenarios for the development of events for the price of ETH in the cryptocurrency market.
Former BitMEX CEO Arthur Hayes stated in a blog post that Ethereum is highly likely to experience a correction over the next few weeks, regardless of the outcome of the merger. Hayes believes that if the merger fails, the leading smart contract platform could face a sharp price cut.
“If the merger fails, the dump will be fast and hard, given the high expectations of the market and the objective reality,” said the former head of the BitMEX exchange.
He believes that in this scenario, traders “either go short or decide not to hold ETH.” Ethereum had reached a very large market capitalization prior to the announcement of the merger. The most popular decentralized applications (dApps) are built using this blockchain.
Hayes noted that Ethereum has the largest number of developers among all the first layer blockchains. Therefore, in this scenario, he does not assume that Ethereum will fall below the $800-$1,000 range. However, in the event of a successful merger, according to Hayes, ETH should rally, although this may not happen immediately.
“A structural decline in inflation will occur only after the merger. I expect this to happen similar to the Bitcoin halving. That is, we all know the dates when they will occur, and yet Bitcoin always shows growth after the halving.
Recall that the transition of Ethereum to PoS will take place on September 15-16. Earlier, Bits.Media published a large-scale article on what to do for Ethereum miners after the network of the second cryptocurrency switches to PoS.