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Analysts predicted that Ethereum’s price could rise exponentially as whales become more interested in the crypto asset, with whale activity hitting a six-week high.
Despite the expected growth, a Ethereum insider suggested that the cryptocurrency would need to address several key issues to ensure it can continue to flourish.
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Ethereum: expected price increase
Analyst Bаsictrаdingtv stated that Ethereum prices could skyrocket as there is growing interest among investors to buy the digital asset, saying that a 60% price increase is very likely.
Blockchain data analytics company Santiment identified a spike in whale activity on the Ethereum network and recommended a possible buying spree.
According to their recent update, whale activity hit a six-week high, with average holders accumulating Ethereum following the scam’s recent price drop.
🐳 Whale activity in Ethereum hit a six-week high as the price fell to $2.38K on Friday. Historically, this has been a sign of accumulation of key stakeholders with a lot of capital. While this is no guarantee that this will have an immediate effect on increasing prices, it is encouraging! pic.twitter.com/zcofdvszLF
— Santiment (@santimentfeed) October 26, 2024
Forecasts from market observers suggested that Ethereum prices could rise and reach the $4,000 mark, while some analysts predicted that the price could even cross the $6,000 level.
Ethereum’s price growth could be fueled by its growing appeal to whales, as evidenced by the six-week high whale activity, during which more than 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 the possible bullish breakout would be negated if ETH price fell to $2,000, saying that this “price zone” is an important indicator to keep an eye on.
Recalibration of the protocol for growth
Meanwhile, Ethereum co-founder Vitalik Buterin said in a post that there are different problems which the cryptocurrency must tackle to thrive in the ever-evolving crypto space.
Buterin explained that one of these issues is simplifying the protocol and ensuring its continued growth. He said the coin’s protocol has become more complicated and is already undermining Ethereum’s integrity and security. He said simplification of the protocol could help address the said problem.
He explained that Ethereum has already made changes in the past, citing the removal of the SELFDESTRUCT opcode as an example. The SELFDESTRUCT opcode was known to complicate interactions between users and pose potential security risks.
However, Buterin cautioned that removing such features should be done systematically so that developers can see the impact of such an action before implementing the changes.
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Solve the storage problem
Another crucial issue Buterin raises is the storage problem facing the cryptocurrency.
Buterin said Ethereum needs at least 1.1 terabytes of storage space to house its vast historical data.
He proposed the implementation of “cryptographic proofs of state,” adding that this solution will allow nodes to retain only a fragment of history.
He added that this approach is the same as the torrent system, where nodes only store pieces of data that cross from one node to another.
At the time of writing, Ethereum is trading at $2,470, a price drop of 2.84% in the last 24 hours. On the other hand, ETH trading volume increased by more than 30% to almost $22 billion in just one day.
Featured image from Forbes, chart from TradingView
