Ethereum, the second largest cryptocurrency by market capitalization, has been a fundamental pillar in the blockchain ecosystem since its launch in 2015. However, in the last days, it has faced significant challenges that have led many to question their future. This exhaustive analysis will explore in depth the current problems of Ethereum, the factors that could boost their price to new more hystericals and a detailed technical analysis of their price movements in the last two years, including more levels, more and short, medium and long term supports.
1. Introduction to Ethereum
Ethereum is a decentralized blockchain platform that allows the creation and implementation of intelligent contracts and decentralized applications (dApps). Unlike Bitcoin, which focuses primarily on being a value-and-a-half-sharing reserve, Ethereum offers a versatile platform for developers, which has led to massive adoption in various sectors, from decentralized finance (DeFi) to non-expendable tokens (NFTs).
2. Ethereum Current Problems
Despite its prominence, Ethereum faces several challenges that could affect its market position:
2.1. Scalability
One of the most outstanding problems of Ethereum is its limited ability to process transactions. Currently, the network can handle about 15 transactions per second (TPS), which is insufficient during high demand periods, leading to congestivity and high gas rates. This limitation has opened the door to competitors who offer more scalable solutions.
2.2. Rates of Gas Elevadas
Gas rates are the costs that users should pay to perform transactions or execute smart contracts on the Ethereum network. During peak activity, these rates can be fired, making the platform less accessible to users and developers with limited resources.
2.3. Crescent competence
Emerging platforms such as Solana, Cardano and Polkadot have won translation by offering quicker and more econic solutions. These platforms seek to attract developers and projects that previously had chosen Ethereum, increasing the competitive presiding.
2.4. Regulatory concerns
The growing attention of regulators to cryptocurrencies and decentralized finances raises uncertainties for Ethereum, especially in areas related to smart contracts and initial offers of currencies (ICO).
3. Factors That Could Drive Ethereum Price to New Mexico
Despite the challenges, several factors could catalyse a significant increase in the value of Ethereum:
3.1. Update to Ethereum 2.0
The transition to Ethereum 2.0, also known as “Serenity”, is one of the most anticipated updates in the crypto ecosystem. This update aims to address the problems of scalability and security through the implementation of Proof of Stake (PoS) and sharding.
3.1.1. Proof of Stake (PoS)
Unlike the current Proof of Work (PoW) mechanism, PoS allows validators to create new blocks and confirm transactions based on the amount of ETH they possess and are willing to “place” as a guarantee. This significantly reduces energy consumption and can improve network security.
3.1.2. Sharding
The sharding involves dividing the chain of blocks into smaller “hards”, allowing transactions to occur in parallel and increasing the capacity of the network. This technique promises to improve scalability without compromising decentralization.
3.2. Institutional adoption
Ethereum’s growing adoption by financial institutions and corporations can serve as a strong boost to its value. Ethereum’s ability to support smart contracts makes it an ideal platform for financial applications, legal agreements and more.
3.3. Decentralized Finance Development (DeFi)
The DeFi ecosystem has experienced explosive growth, and Ethereum is the underlying platform for most of these projects. As more users and capital enter the DeFi space, ETH’s demand to participate in these platforms could increase, raising its price.
3.4. Non-Fungible Tokens (NFTs)
The NFTs have gained popularity as a way of representing the property of unique digital assets. Ethereum is the leading platform for the innovation and trade of NFTs, and continued growth in this sector could boost ETH demand.
3.5. Improvements in User Experience
Developments such as second-layer solutions (e.g., Optimistic Rollups, zk-Rollups) seek to improve user experience by reducing gas rates and increasing transaction speed, which could attract more users and developers to the platform.
4. Technical Angiosis of Ethereum
To better understand the price behavior of Ethereum and its possible future movements, it is essential to analyze their most, more and more levels on different time horizons.
4.1. More and More of the Two Years We
According to historical data, Ethereum has experienced significant fluctuations in its price during the last two years. Next, we detail the most and more annual:
- 2023:
- Maximum: $4,800
- Same: $1,800
- 2024:
- Maximum: $3,500
- Same: $2,200
These data indicate considerable volatility, with Ethereum reaching its most hysterical in 2023 before experiencing a correction in 2024.
4.2. Short, Middle and Long term support
Identifying key support levels is crucial for investors looking for entry or exit points on the market.
