Ethereum Price to Soar After Merge If This Scenario Plays Out, Arthur Hayes Says

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Alex Dovb­nya

For­mer Bit­MEX CEO Arthur Hayes believes that the price of Ethereum could soar high­er after the merge upgrade 

Arthur Hayes, the for­mer CEO of the Bit­MEX cryp­tocur­ren­cy exchange, claims that the cur­rent Ethereum futures term struc­ture may point to a sig­nif­i­cant ral­ly after the merge.

Back­war­da­tion described a term struc­ture where futures con­tracts trade low­er com­pared to the cryp­tocur­ren­cy spot price.

While it might be seen as a rea­son to be bear­ish on the price of Ethereum, Hayes believes that Ethereum traders are hedg­ing out Ethereum expo­sure on the cusp of the much-antic­i­pat­ed merge event. This adds addi­tion­al sell­ing pres­sure to the Ethereum spot mar­ket, accord­ing to the con­tro­ver­sial entrepreneur.

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Image by @CryptoHayes

After years of dis­ap­point­ing delays, some mar­ket par­tic­i­pants believe that the upgrade could still go awry due to how mon­u­men­tal and tech­ni­cal­ly chal­leng­ing it is.

At the same time, Hayes is con­vinced that hedgers will have to cov­er their shorts, becom­ing net long again if Ethereum’s tran­si­tion to proof-of-stake ends up being suc­cess­ful Spec­u­la­tors will also like­ly buy into the “triple halv­ing” nar­ra­tive. Mar­ket mak­ers will have to reverse their posi­tions by going long spot and short­ing Ethereum futures. 

Such a sce­nario could poten­tial­ly push the price of Ether sharply higher. 

As report­ed by U.Today, Ethereum devel­op­ers recent­ly con­firmed that the merge is now on track the merge upgrade is going to take place on Sept. 15.

Last week, Hayes pre­dict­ed that the price of Ethereum would be able to soar back to the $3,500 lev­el after a suc­cess­ful merge event. In fact, he believes that the sec­ond-largest cryp­tocur­ren­cy could even touch $5,000 if this is accom­pa­nied by a Fed pivot.



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