Renowned cryptocurrency capitalist Arthur Hayes has said that Ethereum’s recent ugly price action could be a golden opportunity for Ethereum bulls.
The founder of crypto derivatives exchange BitMEX told his 288,700 Twitter followers that Ethereum’s 22% drop in a week from its $2,030 high should be considered noise to long-term investors. I’m here.
“Huh. Time to think. Are you trading the medium to long term fundamental thesis? Or are you trading the short term price action? Short term price action is ugly. Assuming you are long, It can mean you’re reading the market incorrectly. Is it time to cover, sit still, or add more? It all comes down to your nerves and how well you read the charts. It depends on whether you can do it.
If you are trading a fundamental thesis, did the price action invalidate the thesis? [tenets] What causes price movements? Unless the price action is caused by a change in one of the paper’s tenets, price action should be ignored. And depending on your capital status, it may be wise to further increase your status. ”
At the time of writing, ETH is trading at $1,591, up 1% for the day.
Hayes bullish on Ethereum despite recent drop as he believes The Merge, Ethereum’s highly anticipated transition to proof-of-stake, is still on track It is said that
“If you give me ETH I worry about long positions if there is no merge or something happens that greatly reduces the chances of success. With that in mind, it may be time to go shopping. ”
A few days ago, Hayes predicted a sharp correction move for Ethereum leading up to The Merge. He also noted that the drop is likely to be temporary as Ethereum is benefiting from the upgrade.
“That said, the price of ETH may drop slightly just before and after a merger. Once , the price may continue to rise gradually due to the reflexive relationship between ETH price spikes and network usage, at which point a decision must be made as to when to return to the original position. “
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Featured Image: Shutterstock/Joy Chakma
