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Ethereum could reach $5,000 after the merger

Ethereum could reach $5,000 after the merger

Crypto entrepreneur Arthur Hayes believes that the current price of Ethereum presents a huge buying opportunity for investors. The reason: It’s currently 76% below its $2,815 model price.

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BitMEX founder Arthur Hayes is predicting that the price of Ethereum (ETH) could rise to $5,000 if the merger upgrade is successful and the Federal Reserve continues its pivot.

Notice

Hayes also thinks that Ethereum’s current price presents a major buying opportunity for investors as it is 76% below its price model of $2,815.

Does Ethereum have a future?

Crypto billionaire Arthur Hayes thinks so. In an August 5 post, the industry watchdog highlighted that the Fed’s shift towards “supporting growth rather than fighting inflation” will lead to monetary expansion. A scenario where the Fed would have to print more money to support the economy.

In this scenario, when the Ethereum Merger finally happens in September, Hayes believes the smart contract platform could surpass $5,000 as it will likely make ETH a deflationary asset in high demand.

“The rate at which Ether is issued per year will be reduced by ~90% under the new PoS model. The ethers being withdrawn from circulation will only increase as the network gains popularity. All these factors combined should still drive the price of Ether exponentially.”

A successful Ethereum Fed + merger has no momentum

If the Federal Reserve decides to reverse growth support by printing more money, the upgrade could still send Ethereum’s price to $3,562, according to Hayes.

According to Hayes, the upgrade will trigger a “halving event” for Ethereum. As the price of Bitcoin (BTC) has always responded positively to its halving, it is safe to assume that the price of ETH will react similarly.

More predictions

Hayes emphasizes that the failure or suspension of the Ethereum update and a change in Fed policy would not have a negative impact on the price of the asset. The analyst is confident: Ethereum can maintain its current level of $1,600. However, some people would be disappointed by the failed promises.

If The Merge fails, the price would drop to $1,099, according to Hayes. However, as the Fed provides more liquidity, it is expected that the price of ETH will eventually recover. As between March 2020 and 2021.

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Text credit: Cryptoslate

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