Bikex Network reports:
In the past 24 hours, while the overall market has grown, the price of Ethereum has slightly decreased by 1.03%. Despite this, recent developments still have the potential to push Ethereum out of its current predicament.
Recently, movements in the Bitcoin wallets related to Mt. Gox have caused a stir, and other major cryptocurrencies have also started to grow again. The price of Ethereum seems to be stagnant. Although ETH has increased by 2.49% since last Tuesday, it has barely recovered from its recent losses, rising by 9.16% in the past month.
It appears that Ethereum is no longer basking in the hype of last month’s approval of the Ether ETF by the US Securities and Exchange Commission (SEC). Investment companies are waiting for SEC approval to start trading these products, and apart from SEC Chairman Gary Gensler stating that the launch of the first Ether ETF is “proceeding smoothly,” there have been no other updates.
This premise is reflected in Ethereum’s trading volume, which has decreased 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 one is created, aiming to significantly improve transaction speed and user experience.
Historically, Ethereum’s transaction speed has lagged behind other blockchains. After the Merge, Ethereum’s transaction speed has improved to 5-20 seconds, but other blockchains are still twice as fast. CoinGecko’s May 2024 report highlighted that Ethereum did not make it into the top ten fastest blockchains, while Solana, SUI, and Binance Smart Chain led in speed.
To address this issue, Buterin proposed a method called single-slot finality, which would greatly 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 process transactions faster by utilizing smaller validator groups.
Another proposal by Buterin is to allow users to pay extra fees 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 they are still conceptual. No implementation details or timelines have been provided yet. As the market anticipates the approval of the Ethereum spot ETF in the US, the need to improve transaction speed is critical, with investors closely watching the competitive position of cryptocurrencies.
Ethereum Price Prediction – A Breakthrough Imminent?
With significant news surrounding Ethereum emerging, market sentiment could be the driving force behind its breakthrough from recent stagnation. Last week’s performance might indicate that Ethereum is poised for a breakthrough.
Most notably, the price of Ethereum seems to be forming an ascending triangle pattern (white). Guided by a positive trend line that has formed strong support over the past 9 days, the price of Ethereum has converged to a point, approaching the resistance level at $3524.35.
This suggests that as Ethereum continues to make higher lows, bullish momentum is building. Currently, the altcoin is 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 not break through the pattern. It’s noteworthy that the 30-day moving average (yellow) is currently declining towards the 200-day moving average (blue), which is also on a downward trend. This reflects negative market sentiment as both short-term and long-term trends are downwards.
This might be because the proposed Ethereum upgrades and ETF still do not have clear implementation timelines – hence there is still some uncertainty.