- The Ethereum price is retesting the breached support trendline of inverted pennant pattern before driving to next dip to $1,600.
- Vitalik Buterin outlined a broader strategy centered on adding “cypherpunk-principled” layers that integrate with the existing network.
- The momentum indicator RSI (Relative Strengthen Index) at 47% indicate a neutral market sentiment in short-term trend.
ETH, the second largest cryptocurrency by market capitalization is up roughly 1% during Friday market. The short uptick follows general market sentiment as the U.S. Supreme Court ruled against Donald Trump’s proposed tariffs, bolstering risky assets across financial markets. Amid the macro development, the Ethereum co-founder Vitalik Buterin proposed that he is grafting a streamlined, ideologically pure variant of Ethereum.
Vitalik Buterin Proposes Layered Ethereum Upgrade While Price Tests Support
A crypto user on X suggested allowing the core Ethereum network to die from forks such as tempo, reth, layer-2s, app-chains and big institutions and then starting over with a privacy-focused chain constructed from scratch on RISC-V architecture, as a means to dominate.
Vitalik Buterin mentioned a grander plan by creating “cypherpunk principled non-ugly ethereum” layers that bolt-on to the present-day, offering seamless interoperability and then grow it over time. Meanwhile the main network would acquire important characteristics which cover the entire system like censorship resistance, zk prover friendliness, consensus properties.
Looking ahead, in half a decade or perhaps even faster with the aid of AI instruments for programming and checks, there’d be a pretty path to transition the current setup to code-based agreements through the new syntax of the fresh system, if desired.
He pointed out that Ethereum has already managed to pull off a major overhaul while running, switching to proof-of-stake in The Merge, and suggested doing about four similar feats again, covering areas like state tree, Lean consensus, ZK-EVM verification, VM change.
Ethereum Price Hints Final Retest Before a Dip to $1,600
In our recent analysis we shared a recent breakdown in Ethereum price from the support trendline of a classic bearish continuation pattern called pennant. For over the past two weeks, the ETH price has been consolidating in a narrow range led by two converging trendlines.
As the consolidation followed a significant downtrend from late-January to early February, the current sideways action was expected to renew exhausted bearish momentum.
On February 18th, the coin price breached the pattern’s bottom trendline to signal the downtrend continuation. However, with the recent shift in market sentiment, the ETH is wavering close to the breached trendline and validating its sustainability for a lower price.
A suitable follow-up on downside could bolster Ethereum’s fall for over 17% and retest the bottom trendline at $1,600. Since March 2020, an ascending trendline in daily time frame chart has been bolstering ETH to renew bullish momentum during major downtrend.
On the contrary note, if the coin price jumps above the breach trendline of the pennant, the buyers could restrengthen their grip over this asset and invalidate the previous breakdown. If materialized, the ETH price may rise another 8% to challenge the overhead resistance at $2,200.
Also Read: Bitcoin Supply Rotation Intensifies as Large Holders Trim Positions; What’s Next?
