$5,000 Ethereum? Crypto Analyst Nicholas Merten Makes the Case for ETH Rally Heading Into The Merge

Popular crypto analyst Nicholas Merten says Ethereum (ETH) has a solid shot at rallies in the coming months as the top smart contract platform approaches its highly anticipated transition to proof of stake.

In a new video update, the host of DataDash addresses a recent prediction from BitMEX founder Arthur Hayes forecasting an ETH rally to $5,000 on the back of a successful transition to proof-of-stake, plus a reversal on monetary tightening from the Federal Reserve.

Merten says a 180-degree turn from the Fed anytime soon is likely overly optimistic, but a slow down in interest rate hikes is on the table.

While Ethereum has seen big bear market rallies in the past, Merten says that $5,000 ETH still seems like a long shot.

“All the while I do expect the Fed will pivot, and even though I expect that there’s very good chance that in September, Ethereum will finally actually deliver, and I see that reflect in price action, I think people are getting degree in confidence now. Considering those things, I don’t see us going all the way up to $5,000. Not only would this just be absolutely foreign to what we had in previous bear markets, but on top of that as well, I just want to go ahead and put things in context.

Since the lows here, we’ve already come up about 102% in price. If we take a look at previous bear market rallies, we’ve had 140% returns off of the absolute lows in the preceding months [in 2018]. We’ve come up 360% [in 2019] . All of these are great rallies to keep in mind. And yes, some could argue that ‘Hey, this would be a 472% rally, not too far off from those bear market lows, but it’s important to understand that we have not pulled back anywhere near this bear market back here in 2018.”

Source: DataDash/YoutTube

The analyst gives an upside target of $2,300, or about 35% above current prices.

“I think the realistic scenario here that we should keep in mind is somewhere between [$3,150] and this $1,700… That means we’re calling for probably a $2,200 price tag on Ethereum. While that’s phenomenal, to get something in this range between $2,200 to $2,300, I think it’s going to happen in a much shorter timeframe.”

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