The head of the cryptocurrency exchange warned about the collapse of Ethereum

Arthur Hayes, the ex-director of BitMEX, said that traders should be prepared for a failed merger of Ethereum networks (Merge). According to him, if the Merge replacement fails, the ETH price will experience a rapid collapse. Hayes believes that the best way to hedge against a bearish scenario is to use put options. According to the former head of BitMEX, this will prevent significant capital losses.

Hayes predicted that in case of a failed merger, the Ethereum rate would return to $ 1000. He believes that in this scenario, it will take a long time before the price of the second cryptocurrency recovers to $ 1600. Moreover, this will happen only if the US Federal Reserve System (FRS) moves to a less aggressive monetary policy to combat the high level of inflation in the country.

Hayes assured that if the FRS refuses to raise key rates, the value of Ethereum will be able to exceed $ 5000 for the first time in its history. The expert emphasized that despite the fact that in recent weeks the price of ETH has increased from $ 950 to $ 2000, traders and investors should not rejoice prematurely, as it may be a bull market trap and the ETH rate will continue to fall rapidly.

The former BitMEX director suggests that the price of Ethereum will continue to rise due to deflationary dynamics and the growth of the network after the merger. However, not all experts agree with him.

Earlier, we reported on the announcement of the exact time when the Ethereum network merger will take place and why the cost of the EtherumPoW fork has fallen by 50%.