In the past 24 hours, while the overall market grew, the price of Ethereum slightly declined by 1.03%.
Nevertheless, recent developments could potentially help Ethereum overcome its current difficulties. Recently, movements in the Bitcoin wallets related to Mt Gox caused a sensation, and other major cryptocurrencies also began to grow again.
The price of Ethereum seems to be stagnant. Although ETH has increased by 2.49% since last Tuesday, it has hardly recovered from recent losses, having risen 9.16% over the past month.
It appears Ethereum is no longer immersed in the hype from last month when the US Securities and Exchange Commission (SEC) approved an Ether exchange-traded fund (ETF).
Investment firms are waiting for the SEC’s approval to start trading these products. Besides the statement from SEC Chairman Gary Gensler that the launch of the first Ether ETFs is “going smoothly,” there have been no other updates.
This is reflected in Ethereum’s trading volume, which dropped by 7.85% in the past 24 hours to $10.18 billion.
Given this, traders are looking for other fundamental indicators to determine Ethereum’s next move.
Vitalik Buterin’s Proposal
In a recent blog post, Vitalik Buterin proposed new methods to accelerate transaction confirmation times on the Ethereum network.
He outlined an innovative approach where each block is completed before the next block is created, aiming to significantly improve transaction speed and user experience.
Historically, Ethereum’s transaction speed has lagged behind other blockchains. Since the Merge, Ethereum’s transaction speed has improved to 5-20 seconds, but other blockchains are still twice as fast as Ethereum.
A CoinGecko report from May 2024 highlighted that Ethereum did not rank among the top ten fastest blockchains, with Solana, SUI, and Binance Smart Chain leading in speed.
To address this issue, Buterin proposed a method called single-slot finality, which would drastically reduce the current 12.8-minute transaction finality time under Ethereum’s Gasper consensus.
Buterin also advocated for the use of Layer 2 solutions or rollups, which would process transactions faster by utilizing smaller validator groups.
Another proposal from Buterin is to allow users to pay an additional fee for instant transaction confirmation. This system, known as fee-based confirmation, would enable Ethereum proposers to guarantee that transactions are included in the next block.
Buterin believes these changes are feasible but are currently only conceptual. No implementation details or timelines have been provided.
As the market anticipates the approval of an Ethereum spot exchange-traded fund (ETF) in the US, the need for faster transaction speeds is crucial, with investors closely monitoring the competitive position of cryptocurrencies.
Ethereum Price Prediction – Breakthrough Imminent?
With significant news surrounding Ethereum, market sentiment could be the driving force behind its breakthrough from recent stagnation. Last week’s performance might suggest that Ethereum could experience a breakout.
Most notably, the price of Ethereum appears to be forming an ascending triangle pattern (white). Guided by a positive trendline that has established strong support over the past 9 days, Ethereum’s price has converged to a point, aiming to break above the resistance level of $3524.35.
This indicates that as Ethereum continues to establish higher lows, bullish momentum is strengthening.
Currently, altcoins are retesting this support level. A decisive upward rebound could confirm the strength of this pattern and lead to a retest of the resistance level.
However, given the broader bearish trend, this attempt might fail to break out of the pattern.
Notably, the 30-day moving average (yellow) is currently trending downward toward the 200-day moving average (blue), which is also in a downtrend. This reflects negative market sentiment, as both short-term and long-term trends are on the decline.
This might be because the proposed Ethereum upgrades and the ETF both lack clear implementation timelines – hence, some uncertainty remains.
