Ex-BitMEX CEO says short ETH before Merge, but should you?

BitMEX’s former CEO says an unsuccessful ETH merge will trigger a value crash.

The Merge, anticipated in mid-September, will see Ethereum transition to a Proof-of-Stake.

Ethereum has been gaining forward of the merged platform.

Former BitMEX CEO Arthur Hayes says Ethereum ETH/USD may crash if the anticipated merge flops. In accordance with Hayes, one of the best time to brief the cryptocurrency is on the cusp of the PoS shift. He expects Ethereum to revisit $1,000 if the Merge turns into unsuccessful. The Ex-BitMEX CEO recommends utilizing put choices to hedge in opposition to the bearish state of affairs.

Within the eventful state of affairs that the Merge turns into successful, Hayes says Ethereum may hit $5,000. He additionally expects the Fed’s financial stance to have a serious affect on the worth. A bull case can be bolstered by a much less aggressive transfer by the US central financial institution. Hayes says he’ll nonetheless not promote his ETH stake proper into the Merge.

The feedback by Hayes come when Ethereum is claiming new highs. At press time, the token was buying and selling at $1,875, after sliding from a excessive of above $2,000. ETH’s value is up by 10.72% prior to now one week. The positive factors replicate optimism across the PoS shift. Builders have already accomplished the ultimate PoS merge on Goerli Testnet forward of the Merge.

Ethereum meets resistance after the newest positive factors

Supply – TradingView

From the technical outlook, Ethereum has hit resistance on the $1,950 stage. The weekly chart nonetheless exhibits that the MACD line crossed above the shifting common. That means a possible continuation of the bullish momentum. ETH can be about to clear above the 21-day MA on the weekly chart.

Concluding ideas

Regardless of ETH hitting resistance at $1,950, it’s bullish. Buyers ought to look ahead to a breakout at $1,950 within the subsequent few days. A retracement can be attainable. The upcoming Merge can be a bull value set off. Buyers also needs to be cautious of potential merge-induced volatilities. The coin is an efficient purchase on a breakout.

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