Ethereum has lost just over 80% of its value since reaching an all-time high in November 2021, but some market factors point towards it reaching $3,000 again.
Let’s explore the reasons that it could become a reality and not just another hype phase that the crypto market has experienced so many times.
Why Will Ethereum Recover – 3 Reasons for Ethereum to Hit $3000
Ethereum Merge
Numerous crypto projects have set their sights on becoming more environmentally friendly and Ethereum, one of the best performing altcoins of all time, is one of them. The Ethereum Merge is an upgrade to the Ethereum network and has been anticipated for a long time. It seems that the date has been set for 15 September 2022.
The consequence of the upgrade should be a reduction of electricity consumption by 99% when using blockchain. Cryptocurrency critics have lashed out at blockchain users, claiming their blockchain use is detrimental to the environment. So Ethereum’s efforts to reduce its carbon footprint will mean adopting a system known as proof of stake.
Since many crypto experts expect the Merge to be a massive transformational event for blockchain, now may be the time to buy Ethereum.
The project has been in the works for several years and dubbed ether 2.0, which should reshape the blockchain’s foundation. Mining is one of the main causes of high electrical consumption on the blockchain, and the Merge should alleviate the pressure exerted on electrical grids and reduce the millions of terawatt hours crypto consumes.
Cryptoassets are a highly volatile unregulated investment product. No UK or EU investor protection.
Market Cycle
After consolidating for more than two years, Ethereum went on a massive rally towards the end of 2020. Investors who bought Ethereum in the lows of March 2020 would have profited almost 5,000% if they stayed in the market when ETH topped out at $4,800 in November 2021. Those are massive gains in just over a year and a half.
Since the massive rally, Ethereum has lost just over 80% of its value. Most investors expect Ethereum to drop even further because the sentiment is bearish. But the crypto market has revealed two important trends: a bounce almost always follows a massive crash and reversals occur after 80%+ price plummets.
Ethereum has dropped more than 80%, but it hasn’t had a significant bounce since finding strong support. The market is finally starting to reveal an Ethereum bounce, as the market has produced six consecutive weeks of green candles.
But what indication do we have that the bounce will continue?
Even if Ethereum is set to make new lows, the market has shown that cryptos usually reach 0.702 Fibonacci retracement levels before continuing their trends. For Ethereum, that means reaching at least $3,600.
NFTs
Non-fungible tokens have exploded in the last few years, and the market looks set to grow to $147 billion by 2026. Most NFTs are part of the Ethereum blockchain, and they’re compatible with anything built using Ethereum.
As the NFT market expands so will the Ethereum network and the demand for its coin.
Battle Infinity to $1
Battle Infinity is an NFT fantasy sports game that enables players to access six different platforms, each offering players the opportunity to claim rewards.
This play-to-earn crypto game requires the use of IBAT, its native token, which was trading for $0.0015 during its presale.
The presale was supposed to last 90 days, but all the tokens were sold out within 24 days. The next stop for IBAT is a PancakeSwap listing on 17 August 2022 at 16:00 UTC. That will increase the exposure and liquidity of IBAT, potentially resulting in a price spike.
Celebrity Backing
Big celebrities have also partnered with Battle Infinity. Bollywood actress Urvashi Rautela and international cricketer Irfan Pathan have joined this crypto project.
Staking
Players can earn rewards in the Battle Stake, enabling them to battle it out for the highest rewards. This platform also distributes tokens to the global staking pool, which rewards players for being highly active. And players also battle it out in the Battle Arena, where they can monetize their land and spend IBAT on virtual billboard advertising.
Getting the latest scoop about this game is best achieved via the Battle Infinity Telegram.
Other Crypto Presales
Investors who missed out on the Battle Infinity presale can get in on another massive presale taking place currently. Tamadoge (TAMA) is another NFT game that’s been selling out fast.
Although it’s still in its presale stage, LBank, a centralized exchange, tweeted that it will list the coin – having a CEX listing lined up as well as a Dex (Uniswap) will add more trading volume.
More info about the exchange listing and other updates are available on the Tamadoge Telegram Channel.
Both of these projects combine the P2E mechanic with some move to earn (M2E) and metaverse elements on their roadmap, two other popular sectors of the crypto market.
Source: https://bitcoinist.com/3-reasons-the-ethereum-price-is-moving-to-3k-and-new-cryptocurrency-battle-infinity-is-moving-to-1/