Dual catalysts could send Ethereum (ETH) soaring 200%, according to BitMEX founder Arthur Hayes

If the two possibilities align, former BitMEX CEO Arthur Hayes predicts a massive rally in Ethereum (ETH).

In a new blog post, Hayes Say One catalyst that could spark a strong rally in Ethereum is its imminent successful transition to a proof-of-stake (PoS) consensus mechanism scheduled to launch in September.

The much-anticipated update will enable Ethereum’s mainnet to merge with its beacon chain, which already operates a POS system. The merger will result in Ethereum 2.0, which aims to solve the scalability problems of the network by laying the foundation for future upgrades.

If the ethereum upgrade is successful, Hayes said another factor that could be a tailwind for ETH is another easy monetary policy by the Federal Reserve.

“Fed Pivot + Successful Ethereum Merger (i.e., I speculate on what to expect, and a best-case scenario for ETH). In November 2021, the Fed starts printing money, shitcoins skyrocket, and attention begins to turn around the upcoming 2022 A bullish narrative for an ETH consolidation. So, I’ll use $5,000, the psychological barrier ETH just broke at the time, as my price target in this scenario.”

At the time of writing, ETH is trading at $1,728. A shift to Hayes’ bullish target implies an upside potential of around 200% for the leading smart contract platform.

If the Federal Reserve maintains tight monetary policy and Ethereum successfully transitions to PoS, Hayes said the second-largest crypto asset could appreciate to $3,562.

In the third scenario, where Ethereum’s transition to PoS fails and the Fed maintains tight monetary policy, Hayes said the price of ETH would fall sharply from current levels.

“No free money, no money from [Ethereum co-founder] Archangel Vitalik [Buterin] Take us back to the dark ages. That would be the recent low of $1,081 – my price prediction for this scenario. “

In the fourth scenario, where Ethereum’s transition to PoS fails and the Fed eases monetary policy, Hayes said ETH will drop slightly to the $1,600 level.

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