Economist and crypto dealer Alex Kruger believes that Ethereum (ETH) might rally because it transitions to a proof-of-stake consensus mechanism, colloquially generally known as the merge.
Kruger tells his 145,500 Twitter followers that the August inflation numbers as measured by the US Consumer Price Index (CPI) indicator, which is subsequent scheduled to be launched on September thirteenth, will enhance threat property over the brief time period.
Consequently, Kruger says that Ethereum might surge by as much as 28% from the present ranges.
“If trading ETH directionally for the merge probably want to go long into the event with stops right above the August lows and shoot for a $1,700 break to take price into the $1,800 – $2,100 range. Expect CPI next week to give risk assets a one-week boost.”
Ethereum is buying and selling at $1,635 at time of writing.
While arguing that a inventory market rally is important to set off a crypto bull market, Kruger says that Ethereum might proceed to outperform Bitcoin (BTC) following the transition to a proof-of-stake consensus mechanism.
“Fundamentally the merge improves ETH attractiveness by way of decrease power consumption and extra importantly vastly improved tokenomics. Continued (but diminished) outperformance vs. BTC is smart on a bigger time-frame.
That is very possible not sufficient to kick begin a bull market by itself. Need a bull market in equities for that.”
The economist and crypto dealer, nonetheless, says that the times following the merge might get “messy” as Ethereum trades are closed.
“The merge unwind could be very messy, as spot longs and futures shorts get closed. If playing long, naked futures should have an extra kick (futures, not perpetual futures).”
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