This is Why Ethereum Price Could Easily Be Over $2,000 Before Year End 2022
Disclaimer: The Industry Talk section features insights by crypto industry players and is not a part of the editorial content of Cryptonews.com.
Ethereum (ETH) is in the first stages of its post-merge transition, renewing hope that ETH could end the year with a significant price surge. While the market is unpredictable, ETH could be put in a position for a significant jump to end the year.
ETH Price Movement
Currently, ETH is priced at $1,395.a 7.3% increase in 24 hours and 2.5% in the past week. The asset is trading in line with the broader market, which has experienced an uptrend of 5.7% in the past 24 hours.
However, on the technical front, ETH continues to trail all of its moving average (MA) indicators, except the 10-day MA of $1,337. The asset’s moving average convergence divergence (MACD) is also negative at the moment, giving off a sell signal. However, with a relative strength index (RSI) of 44.78, ETH remains highly underbought and prime for long-term investment.
Capital Inflows on the Rise
One of the biggest catalysts for any asset’s surge is capital inflows. This is especially true for large-cap coins, which require an increase in investor demand for their prices to rise.
Institutions appear to be more comfortable ploughing capital into crypto once more since many analysts believe that the market has reached a bottom. A recent report from CoinShares indicates that inflows into Ethereum-based investment funds have increased by $7 million in the week following the Merge.
The influx of institutional money into Ethereum-based funds coincides with a growth in capital inflows for Bitcoin too. And with asset prices on the rise now, investors could have additional incentives to invest in cryptocurrency.
Increased Adoption of the Ethereum Blockchain
As expected, another major driver for ETH's price is the Ethereum blockchain's adoption. Earlier this month, Bank of America reported that the Merge is expected to increase both the ETH asset and the Ethereum blockchain.
According to the banking giant, a lot of institutions have been looking to gain exposure to Ethereum. However, since the asset was utilizing the proof-of-work (PoW) consensus mechanism, it would have been impossible for them to invest in Ethereum due to environmental concerns - similar to how Tesla distanced itself from Bitcoin in May 2021.
Now that the asset utilizes the proof-of-stake (PoS) consensus mechanism, institutions will be freer to invest in it.
ETH’s stackability is also a critical factor that could easily lead to a surge in the asset’s adoption - especially from institutions.
Tamadoge: A Great Opportunity for Value-Seeking Investors
Despite the bear market, investors still have opportunities for profitability. One asset that appears to be gaining significant traction is TAMA.
TAMA is the native token for Tamadoge - a blockchain gaming project. Here, players can purchase non-fungible tokens (NFTs) that represent digital pets. The objective is to battle these pets with other players’ pets; eventually earning rewards in TAMA tokens.
TAMA has had one of the most impressive pre-sales this year, raising $19 million in just eight weeks. The asset is finally set to list on the OKX exchange, opening it up to more investors.
With the Tamadoge platform expected to launch by the end of the year, TAMA could be ready for a massive pump.