Crypto trader Alex Kruger said Ethereum will shoot up with The Merge
Economist and crypto trader Alex Kruger believes that Ethereum (ETH) could recover as it transitions to a proof-of-stake consensus mechanism, commonly known as consolidation.
Kruger told his 145,500 Twitter followers that the August inflation figure as measured by the US Consumer Price Index (CPI), due next published on September 13, will boost assets. short-term risk.
As a result, Kruger says that Ethereum could rise up to 28% from current levels.
“If ETH trades in the direction of consolidation, you'll probably want to go long into the event with stops just above the August low and bombarding $1,700 to get the price into range en 1,800 - 2,100 dollars. Expect next week's CPI to give risk assets a one-week upside.”
Ethereum is trading at $1,635 at the time of writing.
While arguing that a stock market rally is necessary to trigger a crypto bull market, Kruger says that Ethereum could continue to outperform Bitcoin (BTC) after transition to a proof-of-stake consensus mechanism.
“Basically, consolidation improves ETH's appeal through lower energy consumption and, more importantly, significantly improved encryption. Continuing (but descending) performance against BTC makes sense on a larger timeframe.
That is most likely not enough to start a bull market on its own. Need a bull market in stocks for that. ”
However, the economist and crypto trader said that the days following the consolidation could get “messy” as Ethereum transactions close.
“Consolidated release can be very messy, as spot shorts and futures shorts are closed. If playing long, naked futures there should be an extra kick (futures, not perpetual futures). "
Sep 09, 2022