ETH Coin Gave a New Year Gift to the Investors, Rose by 6.4%

• 1 The Ethereum network’s primary layer is facing some major challenges.
• 2 The ETH coin price is rising along with the whole cryptocurrency market.

The Ethereum network’s primary layer has faced significant scaling challenges due to the growing user base and application field. The current infrastructure’s limitations have been highlighted by high gas fees and network congestion, making it necessary to have efficient L2 solutions.

These L2 networks are designed to ease the burden on the mai- net and provide faster transactions and lower fees, making them an attractive alternative for developers.

It is becoming integral to Ethereum’s future to shift towards L2 networks, not just as a stop-gap solution. The initial signs of a rally within the Ethereum ecosystem are expected to emerge on these scalable platforms, which are set to be the breeding ground for innovation and the go-to space for new projects in DeFi, NFTs, and beyond.

Vitalik’s New Roadmap

Vitalik Buterin’s new road map underscores this transition, with key updates including the solidification of single slot finality (SSF) in post-merge proof of stake (PoS) improvements, which aims to enhance the efficiency and security of the network.

Buterin has also highlighted the importance of cross-rollup standards and interoperability as areas requiring long-term development, enabling seamless communication and transaction execution across different L2 solutions, furthering the composability of the ecosystem.

Continuous improvement is evident in further developments, such as the redesign of The Scourge, the readiness of Verkle trees for inclusion, and the shrinking of “state expiry” to reflect a broader consensus.

Additions like deep cryptography, including obfuscation and delay-encrypted mempools, suggest a forward-looking approach to security and privacy within the network.

Technical Analysis and Prediction of the ETH Coin Price

ETH/USDT chart by TradingView (daily time frame)

Despite concerns over the complete wipeout of Bitcoin and Ethereum open interests (OI) during an annual expiry that resulted in an $11 billion loss last week, the crypto market started 2024 with a bullish rally.

Gradually, Bitcoin and Ethereum futures and options OI started rising. However, the last 24 hours saw the crypto market experiencing over $160 million in liquidation.

More than 46k traders were liquidated in the last 24 hours, and the largest single liquidation order on Binance’s BTCUSDT was worth $10.16 million. Despite this, the broader crypto market is “green” today thanks to over $200 million of shorts liquidation.

At press time, the ETH coin price is up 6.4% in two days, currently at $2,401. Experts predict a strong rally, with some speculating the price to reach $10,000 by year-end.

On-chain indicators suggest a bullish outlook for the cryptocurrency, with potential gains to $2,700 or beyond. Moreover, for the short term, it is expected that the coin will break the current resistance level of $2,398.

Conclusion

The Ethereum network is facing scaling challenges, resulting in high gas fees and network congestion. Vitalik Buterin’s roadmap includes solidifying single slot finality (SSF) in post-merge proof of stake (PoS) improvements and improving cross-rollup standards. Despite recent liquidations in the crypto market, ETH’s price is up 6.4% and is predicted to rally strongly.

Technical Levels

• Support Levels: $1,783 and $1,567.
• Resistance Levels: $2398 and $2956

Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading in stocks, cryptos or related indexes comes with a risk of financial loss.

Steve Anderrson

Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.

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