Arthur Hayes believes ETH's price will rally after the merger of EIP-1559
and BitMEX can be completed in September, similar to how Bitcoin rallies during its periodic halving cycles.
The merger will result in two major changes for the currency, including shifting consensus mechanism
from proof of work to proof of stake and reducing supply issuance rate by approximately 90%.
ETH's spot market activity suggests that market participants anticipate a successful merge event.
ETH futures are trading in backwardation leading all the way until June 2023.
Hayes believes that a feedback loop could form between the price appreciation, usage, and deflationary issuance of ETH.
He anticipates that following a successful merger, these traders will "buy back their ETH positions".