Former BitMEX CEO Arthur Hayes Believes Ethereum Price Could Skyrocket After Merger Upgrade
Arthur Hayes, the former CEO of cryptocurrency exchange BitMEX, says the current term structure of Ethereum futures could indicate a significant rally after the merger.
Forwarding describes a futures structure in which futures contracts trade below the spot price of the cryptocurrency.
While this could be seen as a reason to be bearish on Ethereum’s price, Hayes believes Ethereum traders are hedging exposure to Ethereum on the eve of the highly anticipated meltdown event. This adds further selling pressure to the Ethereum spot market, according to the controversial entrepreneur.
After years of disappointing delays, some market players believe the upgrade could still go wrong due to its monumentality and technical difficulty.
At the same time, Hayes is confident that hedgers will need to cover their shorts, going net long again if Ethereum’s transition to proof-of-stake is ultimately successful. Market makers will need to reverse their positions by going long and shorting Ethereum futures.
Such a scenario could potentially drive the price of Ether up sharply.
As reported by U.Today, Ethereum developers recently confirmed that the merger is now on track, the merger upgrade will take place on September 15th.
Last week, Hayes predicted that the price of Ethereum could rally back to the $3,500 level after a successful meltdown event. In fact, he thinks the second-largest cryptocurrency could even touch $5,000 if accompanied by a Fed pivot.