Ethereum to dip below $1,700, HEX founder claims despite wider optimism

  • Richard Heart, the founder of Hex and Pulse tokens, predicts an Ethereum price drop two days after the EIP-1559 launch.
  • Other experts maintain ETH price could shoot after the London upgrade and the token could even outpace Bitcoin.

The price of Ethereum (ETH) could plunge to “lows under $1,700” following the long-awaited London hard fork upgrade, one expert claims. Hex and Pulse tokens founder Richard Heart voiced this bearish opinion, saying”

I think the price of Ethereum will dump hard in two days when the EIP-1559 goes live.

Moreover, in a recent interview, he said “we are currently in the ‘return to normal bull trap.’” At this, he was referring to the classic Wyckoff “Return to Normal” on the market cycle psychology chart. Such an event is seen as bullish investors’ buy-in while prices begin to experience a downward trend.

Using historical proof, Heart argued,

Speaking about highly speculative markets like Bitcoin and Ethereum have to price run-ups for major news events. The Chicago Mercantile Exchange Bitcoin futures launch in 2017 was the day of the $20k top which went down to $3k. the Coinbase launch this year was the day of the $65k top, and we’ve seen $28.6k so fat, a 56 percent drop. Now, the EIP-1559 is the biggest news in a long time for Ethereum.

Ethereum and the crypto space

Ethereum dominates the world of cryptocurrencies right after Bitcoin, with a $290B market cap at writing time. The Ethereum blockchain is also the largest supporter of decentralized finance applications. The networks’ revamps are set to migrate Ethereum from the energy-intensive proof-of-work to the eco-friendlier proof-of-stake.

Scheduled to go live on August 4, the upgrade is expected to increase transaction speed and lower gas fees. Specifically, the Ethereum Improvement Proposal (EIP)-1559 would introduce minimal payments for Ethereum transactions. The update is one among five EIPs and it could potentially make Ether a deflationary asset.

Already, the cryptocurrency has gained 12.4 percent in a week and is now trading at $2,507, going by CoinGecko charts. The latest trend is the longest “12-day winning streak” recorded according to blockchain analytics firm IntoTheBlock.

More bullish outlook

Bullish Ethereum enthusiasts have countered Heart’s sentiments. Greg Waisman, co-founder, and COO at Mercuryo global payments network spoke to CoinDesk saying,

[…] The coin has trailed an uptrend from the weekend, and we may see this brewing positive sentiment over the coin shooting its price to $3,000 in the coming days/weeks following the update.

Furthermore, Pantera Capital CEO Dan Morehead forecasted that the update will likely make Ethereum outshine Bitcoin. The revamp would also enable the digital token to trade more like a fixed asset, he noted. Mike Novogratz, founder and CEO of crypto investment firm Galaxy Digital, expressed similar views saying ETH could become the “biggest cryptocurrency one day.”

Despite predicting a bright future for Ethereum, Morehead predicts a Bitcoin price surge to $80,000-$90,000 by the end of the year. Thereafter, he says BTC will rise to above $120,000 in a year and to as high as $700,000 in the next decade.

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