Ethereum (ETH) maintains price stability above $1,700 amid new scalability proposals. EIP-9698 aims to increase gas limits by 100 times by 2027, while Vitalik Buterin introduced an update to improve efficiency. Technical analysis shows the potential for a bullish target of $2,875, but support levels remain crucial. Fee structure reforms are also suggested to balance revenue for developers.
Ethereum (ETH) is currently trading at approximately $1,780, maintaining its position slightly above the key support level of $1,700. Despite a recent 1.2% decline over the last day, the cryptocurrency remains stable amid ongoing research on scalability improvements. Key players in the Ethereum ecosystem are presenting proposals that might significantly enhance transaction capacity, indicating a potentially brighter future for the blockchain.
When compared to Bitcoin, whose weekly return stood at 10.6%, Ethereum has managed a commendable 12.4% growth over the past week, but its monthly figure of 6.0% falls short of Bitcoin’s double-digit increase. This discrepancy illustrates a possible trend of capital reallocation as traders grapple with highly volatile market movements, choosing to employ short-term strategies.
One of the notable proposals is Ethereum Improvement Proposal (EIP-9698) suggested by Dankrad Feist from the Ethereum Foundation. This initiative aims for a 100-fold increase in Ethereum’s gas limit over four years. The plan specifies a systematic growth schedule, looking to increment the existing 36 million gas limit up to a staggering 3.6 billion. If successful, Ethereum’s capacity could skyrocket to over 2,000 transactions per second (TPS).
In the proposal, Feist noted, “By introducing a predictable exponential growth pattern… this EIP encourages a sustainable and transparent gas limit trajectory,” which should ideally align with advancements expected from hardware and efficiency protocols. Despite the scalability potential, Feist cautioned about the possible challenges that might arise, such as increased pressure on less-optimised nodes and longer block propagation times.
Vitalik Buterin, Ethereum’s co-creator, has also responded to recent critiques by providing an update on Layer-Zero scalability. He shared research that suggests transitioning from the current Ethereum Virtual Machine (EVM) to a more efficient framework using RISC-V standards. The implications of this move include up to 832 times fewer cycles than current EVM interpreters, alongside a significant reduction in proving cycles and enhanced throughput offerings.
Technical analysis indicates a bullish trend for Ethereum, with the formation of a falling wedge pattern suggesting a potential price upswing. Currently, technical indicators like the Parabolic SAR, signalling strong buying momentum, may suggest a target of around $2,875 if the positive momentum continues. However, failing to hold above $1,569 could lead to an adjustment downwards towards $1,385.
Furthermore, Kevin Owocki and Devansh Mehta from the Ethereum community have pitched an innovative dynamic fee structure. This model utilizes a square root formula that reduces fees proportionately as developer funding rises. Such reform aims not only at ensuring revenue for developers but also at providing a cushion for smaller projects to flourish without burdensome financial strains.
The ongoing modifications, both in scalability and fee structures, underscore Ethereum’s drive to remain competitive amidst growing alternatives like Solana that have garnered increased developer interest. Ethereum’s steadiness in price and its progression toward groundbreaking proposals suggest that the network may well be adapting successfully to current challenges.
