Ethereum co-founder Vitalik Buterin recently announced the fifth phase of Ethereum’s roadmap, dubbed “The Purge,” which analysts believe is a strategic move for the ETH bull market.
This update targets the network's data bloat by reducing unnecessary data storage, making Ethereum more efficient while maintaining core principles of security and performance.
The announcement comes amid speculation that the cryptocurrency market could soon enter a new bullish phase. Some analysts have suggested that this development may be a strategic move by China. Buterin To prepare for increased network usage.
Ethereum performance impact
Although this change is technical, its impact could extend to Ethereum's market performance. Ethereum is trading around $2,600, and analysts argue that the update was likely timed with an impending rally in the broader market.
Regarding X, macro trader Jason Pizzino said: his view that Buterin’s move signals that Ethereum is moving into a more bullish phase. “It's as if Vitalik Buterin knows the bull market is about to step up a gear and he really needs to start building again.” Mr. Pizzino said:
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However, he dismissed Ethereum's current impressive price performance. Pizzino argues that ETH falling below $2,900 at this point in the bull season is similar to the performance of other stagnant crypto assets such as XRP and Cardano (ADA).
Pizzino shared a graph showing Ethereum’s recent price movement, which shows a series of highs and lows from April to September, indicating an impressive trend. However, there are signs of change, with recent moves suggesting higher lows, a potential precursor to a bullish reversal.
Pizzino emphasized that a return to the $2,900 level could be important for a bullish reversal in Ethereum.
Has Ethereum lost its edge?
Meanwhile, other market watchers also highlighted Ethereum's overwhelming development activity. In a Monday post on claimed to have done so.
According to Gray BTC, this behavior undermines Ethereum's competitiveness and is similar to testnet-level chains. He noted that the lack of fresh projects and the memecoin sector's struggles cast doubt on Ethereum's suitability in this cycle.
Gray BTC said it loves Ethereum, but is concerned about the possibility of it happening “Like ADA and XRP, it will eventually go to zero for Bitcoin.”
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