3 Reasons the Ethereum (ETH) price is moving to $3k

Ethereum has lost just over 80% of its value since reaching an all-time high in November 2021, but it may reach $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.

3 Reasons the Ethereum (ETH) price is moving to $3k

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.

Source: bitcoinist

>> Related:

Follow: