Ethereum drops below $1,600, sparking fears of a new low at $800 according to some analysts. Amid cryptocurrency market volatility, Vitalik Buterin suggests technical upgrades to enhance the blockchain. Will ETH bounce back or plunge further?
For several months, the cryptocurrency market has been going through a turbulent period. Ethereum (ETH), the second-largest crypto by market capitalization, has not been spared from these fluctuations. After surpassing the symbolic threshold of $1,600 earlier in the day, the digital currency eventually dropped below this level, fueling fears of a deeper decline.
Although the recent rebound of Ethereum has sparked hope for a recovery, some analysts remain particularly pessimistic. Renowned trader Peter L. Brandt is not hesitant to consider a doomsday scenario where Ethereum could plummet to $800, a level similar to its lowest point in 2022.
This prediction of a collapse to $800 is based on technical analysis and previous bearish cycles observed in the market. It contrasts with the views of other experts who foresee instead a consolidation around $1,600 before a potential return to $2,000. According to Ted, if ETH maintains above 1600 dollars, ETH could return to 2000 dollars by April.
Furthermore, as highlighted by VentureFounder, ETH holders are still in a critical capitulation phase. “The percentage of ETH supply in profits (40%) is now lower than the low of the last bear market cycle (42%), when ETH was trading at $800,” he states. In other words, Ethereum is undergoing its biggest crisis since 2022.
Facing these challenges, the Ethereum team is not sitting idle. Vitalik Buterin, co-founder of the blockchain, has recently presented an ambitious proposal to replace the Ethereum Virtual Machine (EVM) with the RISC-V architecture. This technical change could, according to him, boost computation efficiency by over 50%.
While this initiative maintains upward compatibility, it raises questions about Ethereum’s long-term evolution. The community will be attentive to how these changes will impact the performance and user experience of the second most significant blockchain.
Given the current volatility of the crypto market and the pessimistic forecasts of some analysts, the future of Ethereum seems more uncertain than ever. While the technical team works on improvements, the upcoming weeks will be crucial to confirm whether Ethereum can overcome these challenges. Investors will need to stay vigilant and informed about upcoming developments.
Charles Ledoux is a Bitcoin and blockchain technology specialist. A graduate of the Crypto Academy, he has been a Bitcoin miner for over a year. He has written numerous masterclasses to educate newcomers to the industry and has authored over 2,000 articles on cryptocurrency. Now, he aims to share his passion for crypto through his articles for InvestX.
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