Prominent crypto capitalist Arthur Hayes says Ethereum’s ugly price action as of late might be a prime opportunity for ETH bulls.
The founder of crypto derivatives exchange BitMEX tells his 288,700 Twitter followers that Ethereum’s 22% decline in one week from a high of $2,030 should be considered as noise by long-term investors.
“Ouchie. Time to do some thinking. Are you trading a medium to long-term fundamental thesis? Or are you trading short-term price action? The short-term price action is ugly. Assuming you are long, it could mean you read the market wrong. Is it time to cover, sit tight or add more? That all depends on your nerve and how well you can read the chart.
If you are trading a fundamental thesis, has your thesis been invalidated by the price action? Have any [tenets] of your thesis changed which is the cause of the price action? Unless the price action is driven by a change in one of the tenets of your thesis, then the price action should be ignored. And depending on your capital position, it might be prudent to add more to your position.”
At time of writing, ETH is swapping hands for $1,591, a 1% increase on the day.
Hayes says he remains bullish on ETH despite its recent drop because he believes The Merge – Ethereum’s highly anticipated transition to proof of stake – is still on track.
“If you tell me the ETH merge ain’t happening, or something occurred which severely diminishes it’s probability of success, then I would be worried about my long position. With that in mind, it might be time to go shopping.”
A few days ago, Hayes predicted a sharp corrective move for Ethereum leading up to The Merge. He also noted that the dip will likely be temporary as Ethereum reaps the benefits of the upgrade.
“That said, it’s possible the price of ETH dips slightly heading into and right after the merge. Those who cut partially or fully would initially feel great about their decision. However, as the deflation kicks in, and due to the reflexive relationship between a high and rising ETH price and usage of the network, the price could keep gradually grinding higher. At that point, you would have to decide when to get back into your position.”
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