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The price of Ethereum (ETH) has not yet hit its lows and could eventually fall a further 40% over the next two months as investors adjust to the risk of an impending recession, Daniel Cheung, co-founder of Pangea Fund Management, has said.

Cheung, who runs the crypto hedge fund start-up he recently created with colleague Ryan Watkins after an $85 million first-round funding, also pointed to rising inflation and falling company earnings as factors that could derail stock markets, and Ethereum with it.

Discounting the impact of Ethereum’s much-awaited merge , now only likely sometime in the fourth quarter, Cheung stated: “There will likely be more iterations of lower earnings revisions that follow over the coming months, especially given this is a market regime that very few investors have experienced.

Cheung also said that stock prices did not look cheap at current values, despite a one-year forward price-earning ratio of eight times for Coinbase, the American publicly-traded crypto exchange, a bellwether of sorts within the industry.

Pangea was not short, he refrained, but also said he expects inflation to worsen in July and Aug because of things like rising food prices and increased oil demand, all of which feed into a perfect storm for a “ real capitulation in crypto markets.”