Former BitMEX CEO Arthur Hayes predicts a massive rally for Ethereum (ETH) ahead when two possibilities coincide.
In a new blog post, Hayes says that one catalyst that could spark a strong rally for ETH is the success of the upcoming move to a Proof-of-Stake (PoS) consensus mechanismwhich is scheduled to launch in September.
The highly anticipated update will allow Ethereum’s mainnet to merge with its Beacon chain, which already has the POS system running. The merger, which will result in Ethereum 2.0, is intended to solve the network’s scalability problems and set the stage for future upgrades.
Should Ethereum succeed, Hayes says another factor that could serve as a tailwind for ETH is the Federal Reserve’s renewed accommodative monetary policy.
“Fed Pivot + Successful Ethereum Merger (i.e. what I speculate on and the best case scenario for ETH). In November 2021, the Fed printed money, shitcoins surged, and attention began to shift to the bullish narrative surrounding an upcoming 2022 Ethereum merge. Therefore, I will use $5,000, the psychological barrier that Ethereum was just missing at the time, as my price target for this scenario.”
At the time of writing, ETH is trading hands for $1,728. A rise to Hayes’ optimistic target suggests about 200% upside potential for the leading smart contract platform.
If the Fed maintains tight monetary policy and Ethereum makes a successful move to PoS, the second-largest cryptocurrency asset could surge to $3,562, according to Hayes.
In a third scenario, where Ethereum’s transition to PoS fails and the Fed maintains tight monetary policy, ETH price would fall well below current levels, according to Hayes.
“No free money and no help from [Ethereum co-founder] Archangel Vitalik [Buterin] takes us back to the dark times. That would be the recent low of $1,081 – that’s my price prediction for this scenario.”
In a fourth scenario, where Ethereum fails to switch to PoS and the Fed eases monetary policy, Hayes says ETH would easily fall to the $1,600 mark.
Featured Image: Shutterstock/Voger Design
Source: Crypto News Deutsch