Hayes additionally revealed that the present value of Ethereum represents an incredible shopping for alternative for buyers as it’s promoting 76% beneath his mannequin value of $2815.
Eth to $5000
In an August 5 publish, Hayes stated the Fed’s pivot towards “supporting development quite than preventing inflation” would result in an growth in amount –a scenario the place the Feds must print extra money to help the economic system.
On this situation, when Ethereum Merge ultimately occurs in September, he believes the digital asset would be capable to breach the $5000 mark as it might turn into a deflationary asset with excessive demand.
The speed at which Ether is issued per 12 months can be diminished by ~90% underneath the brand new PoS mannequin … the Ether taken out of circulation will solely enhance because the community grows in recognition … all of those components collectively ought to nonetheless drive the worth of Ether up exponentially.
No Fed pivot + profitable Ethereum merge
In a scenario the place the Feds backtrack on its determination to help development by printing extra money, Hayes thinks the merge would nonetheless be capable to push Ethereum’s value to $3562.
In response to Hayes, the merge is predicted to drive a “triple-halving’ occasion” for Ethereum. Since Bitcoin’s (BTC) value has at all times reacted positively to its halving, one can count on ETH’s value to reply equally.
Hayes continued that if the Ethereum merge fails or is suspended and the Fed pivots its insurance policies, there wouldn’t be any hostile impact on the asset value as it might nonetheless be capable to keep its present degree of $1600.
Nonetheless, a number of individuals could be left upset by the failed guarantees.
Explaining how he arrived at his $1600 prediction, Hayes stated that Ethereum would have gone up by 1.72% with out the thrill of the merge between June 17 and July 26.
So, a merge failure will drop the worth to $1,099. However since there can be extra liquidity from the Fed pivot, he expects ETH to ultimately rise because it did between March 2020 and 2021 when “the Fed expands the cash provide as soon as extra.”
In the meantime, in a situation with no Fed pivot and Ethereum Merge fails, Hayes predicted that ETH would possible return to its July 17 low of $1,081.