So kind of like an eternity, but can target permanents then? Yes and no. Both cards can preform creature denial. However Eternity specializes in hand denial/deckout whereas this card is better at protection/PC/quantum denial.
Think it deserves a 3 cost activation even when upped. Why?
I'm guessing the reasoning is: Since eternity takes 3 to effectively delay a card till you pay its cost to re-enable it this should too.
There is some merit to this, in terms of time / difficulty involved in freeing up a creature, but consider that while eternity will clog up the opponent's draws, this card will not.
So the question is, how much weight should be put on that for balancing purposes.
On the other hand, eternity cannot target permanents. This card apparently can.
Again, how much bearing this has on balance should be discussed.
Last point to consider: Eternity takes up a weapon slot (but can be animated to make a creature) this card is a generic permanent -> More available slots, but cannot be changed into a creature.