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Analysts predict that the price of Ethereum could rise significantly as whales become more interested in the crypto asset, with whale activity hitting a six-week high.
Despite the expected growth, an Ethereum insider suggested that the cryptocurrency must face several key issues to ensure it can continue to thrive.
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Ethereum: Price Expected to Rise
Analyst Basictradingtv said that Ethereum prices could rise as there is a growing interest among investors to buy the digital asset, saying that a 60% increase in prices is very possible.
Blockchain data analysis company Santiment identified a spike in whale activity on the Ethereum network and recommended a potential buyout.
According to their latest update, whale activity has reached a six-week high, with rate holders accumulating Ethereum after the recent price drop of the con.
🐳 Ethereum’s whale activity hit a 6-week high as its price dropped to $2.38K on Friday. Historically, this is a sign of accumulation for key stakeholders. While there is no guarantee that this will have an immediate impact on prices, it is encouraging! pic.twitter.com/zcofdvszLF
– Santiment (@santimentfeed) October 26, 2024
Speculations shown by market observers suggested that Ethereum prices could rise and reach the $4,000 mark with some analysts predicting that it might even break the $6,000 level.
Ethereum’s price growth may be fueled by its growing appeal to whales as shown in the six-week whale activity where more than 6,400 wallets were made by large investors.
Bаsictrаdingtv also admitted that Ethereum prices could reach the level of $4,000. However, he pointed out that the possibility of a bullish breakout will be invalid if the price of ETH drops to $2,000, saying that this “price zone” is the main indicator to keep an eye on.
Recalibrating Protocol For Growth
Meanwhile, Ethereum founder Vitalik Buterin said in the post that there are several issues that the cryptocurrency must face in order to succeed in the ever-changing crypto environment.
Buterin explained that one of these problems is to simplify its protocol and ensure its continued growth, saying that the protocol of coins has become complex and already undermines the integrity and security of Ethereum. He said the simplification of the protocol could help address this issue.
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 compromise interactions between users and create security vulnerabilities.
However, Buterin cautioned that the removal of such features should be done systematically so that developers can see the impact of such an action before making changes.
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Solving the Storage Problem
Another critical problem raised by Buterin is the ultimate problem faced by cryptocurrency.
Buterin said Ethereum needs at least 1.1 terabytes of storage to store its massive historical data.
He proposed the implementation of “cryptographic evidence of the state”, adding that this solution will allow nodes to keep only part of the history.
He added that this approach is similar to a torrent system where nodes store pieces of data that cross from one place to another.
At the time of writing, Ethereum is trading at $2,470, a 2.84% price decrease in the last 24 hours. On the other hand, the trading volume of ETH increased by more than 30% to almost $22 billion in just one day.
Featured image from Forbes, chart from TradingView