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Analysts have predicted that the price of Ethereum could rise significantly as whales increase interest in the cryptocurrency assets, with whale activity reaching its highest level in six weeks.
Despite the expected growth, A Ethereum One insider suggested that the cryptocurrency must address several key issues to ensure it continues to thrive.
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Ethereum: Expected price rise
Analyst Basictradingtv stated that Ethereum prices could rise significantly as there is a growing interest among investors in purchasing the digital asset, saying that a 60% price rise is very likely.
Blockchain data analysis firm Santiment has identified a spike in whale activity on the Ethereum network and recommended a potential buying spree.
According to their latest update, whale activity has reached a six-week high, with regular whale holders accumulating Ethereum after scammers’ recent price drop.
🐳 Ethereum whale activity rose to a 6-week high as its price fell to $2.38K on Friday. Historically, this is a sign of accumulation from major stakeholders with high capital. Although this does not guarantee that it will have an immediate impact on rising prices, it is encouraging! pic.twitter.com/zcofdvszLF
— Santiment (@santimentfeed) October 26, 2024
Predictions shown by market observers indicate that Ethereum prices may rise and reach the $4,000 level, and some analysts expect that it may break through the $6,000 level.
Ethereum price growth could be fueled by its increasing attractiveness to whales as demonstrated by a six-week high whale activity where over 6,400 new wallets were created by major investors.
Basictradingtv also agreed that Ethereum prices could reach the $4,000 level. However, he hinted that a potential bullish breakout would be negated if ETH price drops to $2,000, saying that this “price zone” is a key indicator to watch.
Recalibrate the protocol for growth
Meanwhile, Ethereum co-founder Vitalik Buterin said in his post that there is Several issues Which cryptocurrency needs to address to thrive in the ever-evolving crypto space.
One of these issues is simplifying its protocol and ensuring its continued growth, Buterin explained, saying that the currency’s protocol is becoming more complex and is actually undermining the integrity and security of Ethereum. He said simplifying the protocol could help address the aforementioned problem.
He explained that Ethereum has already implemented changes in the past, citing the removal of the SELFDESTRUCT opcode as an example. The SELFDESTRUCT opcode is known to complicate interactions between users and pose potential security risks.
However, Buterin warned that removing these features should be done in a systematic manner so that developers can see the impact of this action before implementing changes.
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Solve the storage problem
Another critical issue raised by Buterin is the storage problem that cryptocurrency faces.
Buterin said Ethereum needs at least 1.1 terabytes of storage space to store its massive historical data.
He suggested implementing “state encryption proofs,” adding that this solution would allow nodes to retain only part of the histories.
He added that this approach is the same as torrenting, where nodes only keep parts of the data that cross from one node to another.
At the time of writing, Ethereum was trading at $2,470, The price has fallen by 2.84% in the past 24 hours. On the other hand, ETH trading volume rose more than 30% to nearly $22 billion in just one day.
Featured image from Forbes, chart from TradingView
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