• Ethereum wants to achieve real-time proof through advanced cryptography.
  • FTX/Alameda has deposited 4,000 ETH into Coinbase.
  • ETF analyst James Seyffart confirmed that Defiance Investment has applied for a 2x leveraged Ethereum futures ETF.

Ethereum broke out of a one-week consolidation streak on Monday when it outperformed Bitcoin (BTC) to reach $3,730. The price increase highlights rising social media activity for Ethereum following Vitalik Buterin's speech at Tuesday's Hong Kong Web3 carnival.

Read more: Ethereum's price recovery looks imminent as ETF approval sees a glimmer hope

Daily digest market movers: Vitalik's speech, FTX ETH deposit, Defiance futures ETF

Ethereum has been showing high social media activity since Monday, according to data from LunarCrush. Here are some of the market movers causing increased attention for the largest altcoin: 

  • In a speech titled "Reaching the Limits of Protocol Design" at Tuesday's 2024 Hong Kong Web3 carnival, Ethereum co-founder Vitalik Buterin drew a contrast between protocols of the 2010s and 2020s. He stated that while protocols of the 2010s were mainly based on basic cryptography, protocols in the 2020s need to be based on advanced cryptography, such as ZK-SNARKs, MPC, FHE, 2PC or Aggregation.

    However, he also noted the efficiency and security issues in these advanced cryptographic solutions and how they slow block verification and proof time. He further went on to clarify that Ethereum aims to achieve real-time proof and suggested "parallelization and aggregation trees" as a potential solution. Vitalik also presented an Ethereum ecosystem diagram that sparked debate in the crypto community. The diagram featured projects like Arbitrum (ARB), Optimism (OP) ecosystem, Starknet ecosystem, zkSync, Metis, Linea, Scroll, Fuel and Polygon (MATIC), excluding Layer 2s that do not use Ethereum as their data availability layer.
     
  • According to Spot On Chain, defunct exchange FTX and its sister firm, Alameda Research, deposited 4,000 ETH worth $14.75 million to Coinbase on Monday. The duo has been depositing ETH on Coinbase since the market rally on February 1, and its recent deposit brings the total to 21,650 ETH—approximately $72.4 million.
     
  • This comes at a time when Defiance ETFs have filed for a 2x leveraged Ethereum futures ETF, as confirmed by Bloomberg analyst James Seyffart in an X post on Monday. If approved, the leveraged ETH futures ETF could go live around late June, trading under the ticker ETHL. The recent filing contrasts Defiance's earlier application for 2x Short MSTR ETF, tracking 2x the daily inverse performance of MicroStrategy incorporated stock. The move appears complex as Bitcoin's price movement has heavily influenced MicroStrategy's stock and ETH price in the past few years.

Also read: Ethereum on course to post weekly losses as debate over security status continues

Technical analysis: Ethereum bulls may not sustain buying pressure

Ethereum's price has seen a correction in the past 24 hours after reaching a three-week high of $3,730 on Monday. Its recent price increase indicates a short-term excitement among long traders. However, liquidation data from Coinglass on Tuesday shows bears are beginning to have their way, with ETH seeing the largest liquidation of more than $69.5 million. Liquidated long positions account for $48.9 million.

The largest single liquidation order occurred in an ETH-USD-SWAP worth $7.5 million. ETH is trading at $3,515, down 3.5% on the day. It has broken previous support levels of $3,570 and $3,517 and tested the next support of $3,479. This move is to fill the liquidity void posted on Monday.

Read more: Ethereum continues consolidating as Q1 results show massive growth for the largest altcoin

ETH/USDT 4-hour chart

ETH/USDT 4-hour chart

If bulls show weak hands, ETH could decline further, especially as Bitcoin trades in the red on Tuesday.

Ethereum development FAQs

After the Merge, the Ethereum community is looking at the Sharding upgrade next, which has been slated for sometime later in the year. The development can be summarized in four words, “scalability through more efficient data storage.” The software update will increase the capacity of the blockchain, widening the amount of data that can be stored or accessed. At the same time, all services running atop the Ethereum blockchain will enjoy significantly reduced transaction fees.

A fork is the splitting of a blockchain after developers agree and proceed to implement upgrades. The decision comes after these developers reach a consensus for a software upgrade. The ensuing part will see one part continue with the status as is, while the other one will proceed with new features combined with the former ones. A hard fork basically entails permanent divergence of a new side chain from the original one, while a soft fork is doing the same, only difference being that it is temporary.

EIP-4844 is an improvement proposal for the Ethereum network. The upgrade promises reduced gas fees, which is a valuable offering considering the high transaction cost that continues to daunt crypto players. It has been a long-standing concern for the Ethereum network. The proposal is also referred to as “proto-Danksharding,” with an unmatched ability to increase the speed of transactions on the Ethereum blockchain. At the same time, it helps to reduce the transaction cost as everything becomes decentralized.

Gas token is a new, innovative Ethereum contract where users can tokenize gas on the Ethereum network. This means they can store gas when it is cheap and start to deploy the gas once the market has shifted to the north. The use of Gas token helps to subsidize high gas prices on transactions, meaning investors can do everything from arbitraging decentralized exchanges to buying into initial coin offerings (ICOs) early.

 


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended Content

Editors’ Picks

BTC steadies  as Microsoft shareholders vote on investment proposal looms

BTC steadies as Microsoft shareholders vote on investment proposal looms

Bitcoin hovers around $97,800 on Tuesday after almost a 4% drop on Monday as traders look at the upcoming Microsoft shareholders' vote on Tuesday to add BTC to the balance sheet, a move that, if approved, could catalyze a further rally. 

More Bitcoin News
Altcoins LTC, CRV and ONDO recover after retesting key support levels

Altcoins LTC, CRV and ONDO recover after retesting key support levels

Litecoin, Curve DAO and Ondo prices recover on Tuesday after retesting and bouncing off key support levels following Monday’s double-digit correction. The technical outlook suggests a further recovery ahead, with the MACD momentum indicator supporting the rebound.

More Cryptocurrencies News
DOGE and SHIB leveraged traders wiped out: Over $108 million in liquidated

DOGE and SHIB leveraged traders wiped out: Over $108 million in liquidated

Dogecoin and Shiba Inu prices continue to edge down on Tuesday after falling more than 10% on Monday. The recent downturn at the start of this week has liquidated over $108 million from these dog theme-based memecoins in the last 24 hours.

More DOGE News
SEC Commissioner Caroline Crenshaw tagged more anti-crypto than Gensler as voting approaches

SEC Commissioner Caroline Crenshaw tagged more anti-crypto than Gensler as voting approaches

Crypto advocacy group Cedar Innovation Foundation and several industry leaders are rallying against the renomination of  SEC Commissioner Caroline Crenshaw, who allegedly opposed the approval of the spot Bitcoin ETFs in January.

More Cryptocurrencies News
Bitcoin: Long-awaited $100K milestone meets profit taking

Bitcoin: Long-awaited $100K milestone meets profit taking

Bitcoin ends the working week hovering around $98,000 after a very volatile Thursday when it surpassed the $100K milestone and underwent a sharp correction. Strong institutional demand, whale accumulation, and the choice of a pro-crypto figure to lead the US SEC fueled the rally this week. 

Read full analysis
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

BTC

ETH

XRP