Ethereum: Merge may not happen, but ETH will hit $3,000 by year end – Analyst

  • Arthus Hayes said that he won’t believe the Merge is a success until the Ethereum PoS is up and running.
  • The BitMEX CEO remains bullish on ETH price and expects it to touch $3,000 irrespective of global macro conditions.

Just two days ahead of the much-awaited Merge event, Arthus Hayes, the chief executive of crypto exchange BitMEX fired shots. Hayes has shared his concerns over Ethereum’s transition to Proof-of-Stake which he believes may not happen.

During his recent interview with the Bankless podcast, the BitMEX CEO said that he and many others don’t believe that the Merge will happen. He added:

I don’t think people believe the merge is going to happen still. I can’t sit here and tell you that I think for 100% that they’re going to switch to proof-of-stake… I’m not in the trenches like the developers have been since 2014…

If you’ve been around long enough, you’ve heard the talk about proof-of-stake for five, six, seven years… has it happened yet? No.

Arthur Hayes added that the best way to prove Ethereum’s upgrade is to show the Proof-of-Stake (PoS) working in a real environment with decentralized apps (dApps) running over it. “Show me POS, show me that it works, show me all the dApps function just as they did before,” he added.

Well, it is certainly a fact that the Ethereum PoS transition has been on delay for a long time. However, the Merge upgrade events have been going on as per the recent timeline. Before the final showdown on September 15, the Ethereum developers also successfully conducted the Merge upgrade on multiple testnets over the last few weeks.

BitMEX CEO expects ETH to touch $3,000 by year end

Although Arthur Hayes isn’t quite optimistic about the Merge event, he is positive about the ETH rally. The BitMEX CEO expects ETH to touch $3,000 irrespective of whether the Merge is a success or not. Hayes said that he isn’t even worried about the Fed action in the upcoming owing to inflationary pressure. Hayes added:

I have bought calls for $3000 by the end of the year. I am not worried about the FED because even if the FED raises rates by 20%, there will be a certain amount of demand for $Eth to use the dApps and the supply isn’t there to meet it!

Instead of spot trading, Hayes could be ETH derivate trades. But he cautions that one must be good at timing when taking trades on leverage. The BitMEX CEO added that he’s choosing the December strike “is that it’s usually liquid since it’s the EOY & the market usually goes up or down a lot in the Q4”.

Hayes added that to be good as a trader, one needs to be good at POSITION SIZING. “The major reason for the 3AC’s fall was that they made the wrong trade, they didn’t size their positions correctly. I have been wrong on a lot of things, but I don’t have to be right on everything as long as I am right on a few things!” he added.

About Author

Bhushan is a FinTech enthusiast and holds a good flair for understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In his free time, he reads thriller fictions novels and sometimes explores his culinary skills.

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