Yerevan (CoinChapter) – Could Ethereum (ETH) price reach a new record high of $3,000 by the end of this April, especially after suffering a brutal sell-off this Friday? Probably yes, according to Nick Spanos, the founder of Zap.org.
The top executive told CoinChapter.com exclusively that the ETH/USD exchange would soar, providing a flurry of reasons to explain his extremely bullish take on the second-largest cryptocurrency by market capitalization. One of the primary factors, according to Mr. Spanos, that could push the prices higher is a network upgrade.
Dubbed as Berlin…
…the Ethereum hard fork incorporates a cluster of optimizations on gas efficiency and security improvements.
Meanwhile, later versions would transit Ethereum’s network from proof-of-work to proof-of-stake, enabling ETH holders to stake their tokens in a smart contract as a contribution to run its blockchain. In return, they would earn annual percentage yields, similar to how banks reward their depositors with interest rates for maintaining a minimum balance.
Mr. Spanos believes the Berlin upgrade would start what he thinks is a supply crisis in the Ethereum (ETH) market. Meanwhile, if Ethereum tokens’ demand keeps increasing, it would lead to a classic high-demand-low-supply scenario that makes the underlying asset more expensive.
“With the upcoming EIP 1559 upgrade, Ethereum will also become a deflationary asset. This feature will reduce the supply of the coin and thus, have a corresponding effect on the price, creating an attraction point for more buyers,”he said.
In retrospect, the EIP1559 update proposes to turn the gas fee into a so-called “base fee”, which will burn the fee paid to the miners.
“Ethereum might hit ATH level,” added Mr. Spanos. “The growth of Ethereum is organic and could be an aftereffect of the Berlin Upgrade which comes with the reassurances of better network features in the near term.“
Meanwhile, Mr. Spanos’s statements appeared just as Ethereum corrected lower after establishing a new all-time high near $2,646.
The ETH/USD exchange rate value dropped by up to 14.14 percent, hitting an intraday low of $2,060, before rebounding higher on renewed accumulation sentiment. Nevertheless, the pair maintained its overall bullish bias despite the plunge. It now expects to continue reaching higher price levels.