The cryptocurrency market took a bearish turn around the end of October, causing concern among investors hoping for a rally in the fourth quarter. Most major cryptocurrencies may witness recovery trendline stalling, but Ethereum price could see a bullish reversal on the back of major support and Vitalik Buterin's views on decentralized staking grants expensive.
At the time of writing, ETH price is trading at $2,470, with an intraday loss of 0.5%. The market capitalization continued to be $297.02 billion.
Will Vitalik Buterin’s staking grant push Ethereum price to $3,000?
In response to growing questions about the Ethereum Foundation's recent ETH sale, co-founder Vitalik Buterin explained why he decided to liquidate rather than stake. Holdings.
Buterin explained that the decision was part of a broader strategy to avoid being forced to take an “official position” in the event of a contentious hard fork. This means that by staking funds, foundations can end up in situations where the Internet aligns with or aligns with certain factions, which can skew the community's perspective when making important decisions. means.
So Vitalik suggested an alternative, where the foundation would grant ETH to other communities who want to stake their assets on Ethereum. These grants will function as a decentralized staking initiative, where participants will earn staking rewards and have a significant say in blockchain decision-making.
Another potential solution to this challenge is to distribute legitimacy and resources across multiple organizations. Empowering different trusted entities within the Ethereum ecosystem will result in multiple voices representing the interests and trustworthiness of Ethereum.
One internal reason for this is that we don't want to be forced to make a “formal choice” in the event of a controversial hard fork.
One interesting idea being considered in this regard is to give some grants in the form of “You can stake your ETH…”
— vitalik.eth (@VitalikButerin) October 27, 2024
Vitalik’s vision to strengthen the decentralization of the ETH network should strengthen natural demand for this crypto and drive Ethereum’s price recovery.
ETH price analysis shows 15% rise before hitting major support
Amid a broader market correction, Ethereum price forecasts point to a sharp reversal (11% decline) from $2,767 to $2,464 within a week. This bearish reversal from $2,800 signals a continuation of the stock's nearly three-month decline.
If the sell-off continues, the altcoin price could drop by 15% and retest the long-term support trendline at $2,100. If history repeats itself, dynamic support should help ETH form a bottom and facilitate a recovery that is trending above $3,000 and then above $4,000.
On the contrary, Ethereum price trading below key daily EMAs (20, 50, 100, 200) indicates that bearish sentiment is established in the market. Therefore, a break below the lower trendline of the pattern will accelerate the selling momentum and result in a significant correction below $2,000.
Frequently asked questions (FAQ)
While decentralized staking could provide momentum to ETH demand, the price still faces resistance near $2,800, near the 200-day exponential moving average.
Decentralized staking grants involve the Ethereum Foundation granting ETH to communities that wish to stake on behalf of Ethereum.
Ethereum’s main support trend line, which has held since June 2022, is around the $2,100 level.
Sahil Mahadik
Sahil is a dedicated full-time trader with over 3 years of experience in financial markets. He has a strong grasp of technical analysis and keeps a close eye on daily price movements of top assets and indices. Drawn by his fascination with financial products, Sahil enthusiastically embraced the emerging field of cryptocurrencies and continues to explore opportunities driven by his passion for trading.
Disclaimer: The content presented may contain the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or publication assumes no responsibility for your personal financial loss.
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