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BitMex’s Hayes Says ETH Is Going To $5,000 — Is He Right In Dumping SOL?

Last Updated December 22, 2023 2:02 PM
Nikola Lazic
Last Updated December 22, 2023 2:02 PM

Key Takeaways

  • Solana is marking an over 10x increase since the start of the year.
  • Ethereum is showing signs of weakness and is up by “only” 100%.
  • Both await larger corrections before going to a new ATH.

Co-founder and former cryptocurrency exchange BitMex  CEO, Arthur Hayes, has surprised Twitter by posting  a controversial statement that sparked much discussion. Although in the joking context of receiving a divine message, his actions are serious. 

Namely, he sold his Solana holdings to reinvest them into Ethereum and added that he expect ETH to go to $5,000. 

 

There is not rationale behind the move nor a valid explanation for the ETH price target nor the time frame for that matter. So, in this analysis, we will cover the ETH and SOL price charts and attempt to uncover the details of this prophecy. 

SOL Price Analysis 

Our recent Solana analysis discussed the wave of positivity surrounding the project regarding its fundamentals. But considering the price chart, there are signs to be cautious. 

Solana entered the upper range
Solana entered the upper range

Today, the price of SOL reached a new yearly high of $100, with these values last seen in May 2022. We saw a breakout above the horizontal resistance level around $80 and the price entered the upper range. 

Regarding the price structure, this is the continuation of the uptrend that started on September 11 and is likely its ending wave. However, there is still more short-term upside potential. We could see the price headed to its next significant price point of $125 before any significant declines. 

Moreover, the next decline should be corrective, as the price is in wave 3 from a larger five-wave impulse. Nevertheless, in this correction, it could go as low as $50 before continuing its upward trajectory to a new all-time high. 

ETH Price Analysis 

Ethereum’s chart shows a different picture. From June 2022, we saw the formation of the larger ascending channel in which the price made a five-wave move. On December 9, it made another interaction with its resistance level, which could have marketed the competition of this patter. 

Signs of weakness displayed
ETHUSD daily chart

If this was the first structure in its next bull cycle, the price of ETH should now form a larger ABC correction to the downside, potentially bringing the price back to $1,500. 

After this correction establishes the first macro higher low, the price of ETH could embark on a multi-year upward journey of achieving a new all-time high above its previous one of $4,800. 

ETH vs SOL

SOL has more upside potential in the short term than ETH before making a significant correction. However, both in the near term and in the long run, both coins must undergo these corrections to continue sustainably upward. 

From its June low of 2022, Ethereum only recovered by 136%, measured to its December 2023 high. June 2022 marked the lowest point ETH has been since the all-time high, which is, in the SOL case, January 2023. 

Since the start of the year, SOL gained 1132% while ETH only gained 102%. Maybe the message to Arthur Hayes isn’t divine but purely rational – take profits from an overbought asset and reinvest them into an undervalued one. But cryptos aren’t always rational, and investing in a worse-performing asset could sometimes be more of a gamble than a reasonable decision. 

In conclusion, Solana isn’t displaying signs of weakness as it entered its upper range above $100. Meanwhile, ETH isn’t displaying any signs of strength. So, to answer the question raised in the title – no, Arthur Hayes isn’t right. 

Disclaimer

Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.

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