Will Ethereum (ETH) Price Hit $2k By August End or Bears Take The Control?

The Crypto bulls are making an effort to regain their initiative. Some coins, though, continue to trade in the red zone. Since its price fell by about 20% over the previous week, Ethereum (ETH) has suffered even greater losses. According to prominent crypto investor Arthur Hayes, Ethereum’s recent price movement may present a golden chance for ETH bulls.

According to BitMEX’s founder, long-term investors should disregard Ethereum’s 22% drop from a high of $2,030 in just one week as noise.

“Ouchie. Time to do some thinking. Are you trading a medium to the 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.”

He questions, has the price action refuted your fundamental argument if you are trading it? Has anything in your thesis that explains the price activity changed? The price action should be disregarded unless it is caused by a modification of one of the premises of your thesis. Furthermore, depending on your capital situation, it can be wise to increase your position.

Merger aka the savior?

Despite ETH’s recent decline, according to Hayes, he is still bullish on the cryptocurrency because he thinks The Merge, Ethereum’s eagerly awaited switch to proof of stake, is still on schedule.

He says that if the ETH merging isn’t going to happen, or if something happened that significantly reduces the likelihood that it will succeed, then I would be concerned about my long position. Prior to The Merge, Hayes projected that Ethereum will have a dramatic corrective move. He added that the decline is probably only going to last while Ethereum benefits from the upgrade.

It’s likely that ETH’s price dropped slightly before and after the merger. The price could continue steadily climbing higher when deflation sets in and because of the reflexive link between a high and rising ETH price and network utilization. You would then have to choose when to return to your position.