- Ethereum co-founder shared the possibility of major upgrades after the merge.
- Despite ETH's recovery, the threat of a downside remains.
With markets off to a strong start this week, Ethereum [ETH] Co-founder Vitalik Buterin shared his insights on the potential for scaling proof-of-stake (PoS) systems.
He reflected on what still can be improved after blockchain's significant transition in “The Merge.”
Recently postButerin is betting on single-slot finality for faster block approval, democratization by reducing barriers to entry, and single-slot finality for greater security by hiding block proponents until they go public. He highlighted important proposals such as secret leadership elections.
These changes are aimed at improving efficiency, accessibility, and protection against censorship and attacks.
ETH market status
This new offer, coupled with Monochrome Asset Management's plans to launch Australia's first spot Ethereum exchange-traded fund (ETF), had a positive impact on prices.
At press time. ETH is trading at $2,520, up 2.37% in the past 24 hours.
Source: TradingView
Additionally, the Moving Average Convergence Divergence (MACD) formed a bullish crossover, further confirming the new bullish momentum.
The price has reversed the 20-day EMA but has not yet made a decisive move above the 50-day EMA.
A recovery would allow the bulls to extend the rally towards $2,700. Furthermore, to reverse the long-term bearish trend, ETH bulls will need to break out of the 200-day EMA resistance around $2,800.
What do the indicators show?
Similar to the price, Ethereum's market dynamics have also revealed some interesting signs of change. There were significantly more liquidations of shorts than longs, suggesting that bears were being forced out of their positions, leading to a short squeeze.
positive funding rate cryptoquantreinforced this bullish bias. Additionally, the weighted sentiment of 0.131 reflects a moderately positive outlook among investors, suggesting growing confidence.
Is the bull market under threat?
Despite the recent recovery, AMBCrypto analysis shows that coin glass Be careful with liquidation heatmaps.
Source: Coinglass
Over the past week, a strong liquidity cluster has formed around $2,400. This magnetic zone can pull the price towards it. This level can act as important support in case of a pullback.
A short squeeze remains a possibility, but a break below $2,400 could trigger an extended liquidation and potentially reverse the trend.
