Ethereum (ETH), the second-largest cryptocurrency by market value, did not hit the expected price levels during the current market upswing. Ethereum is still trying to reach its highest value from 2021, while Bitcoin and some other altcoins are seeing big jumps and hitting new record highs.
ETH maintains its direction from 2025, mirroring last year’s patterns of pessimism throughout the cryptocurrency market. The Ethereum Foundation confronts two pressing organizational issues among its internal leadership. Ethereum co-founder Vitalik Buterin recently addressed the problems and suggested organizational modifications in the coming weeks.
Discussions circulated about launching another Ethereum foundation after the termination episode. Buterin then introduced the Ethereum 2025 strategy, which proposed solutions to its current problems. However, the question remains: Will the blueprint restore ETH’s market financial value?
ETH currently has a value of $3,300 as of this writing. Tron founder Justin Sun indicated that Ethereum blockchain development would change when ETH tokens reached the $10,000 mark, as he would shift his attention to layer-1 work instead of multiple layer-2 development.
Buterin demonstrates contrast relative to his stance when compared with his peers. His latest blog acknowledges major difficulties affecting Ethereum’s Mainnet and its layer-2 solutions. He remained positive about the future because the Ethereum 2025 strategy prioritizes simultaneous scaling work on its layer-1 and 2 components.
Buterin identified coordination issues as Ethereum’s primary challenge, which has raised deep public concerns. The proposed termination of layer-2 development resonated with him, yet the evolving product was completely dismissed from his perspective.
According to Buterin, by 2025, Ethereum will tackle the scaling needs of both layer-1 and layer-2 technologies simultaneously. Combining these solutions would help the network resolve its present limits and restore its leadership position in the fast-moving blockchain environment.
Ethereum Faces Challenges for a Bullish Turnaround in 2025
Ethereum’s path toward significant price growth during 2023 is unclear because data shows that short-term improvements seem unlikely. Multiple important performance indicators make the current condition of cryptocurrency clear.
The Mean Dollar Invested Age (MDIA) analyses the blockchain age of all tokens through currency values to establish the buying price-weighted average age. An upward-trending MDIA reveals that steady hands within the Ethereum community maintain their investments without divestment. As MDIA declines over time, it demonstrates a growing coin movement that mirrors bullish market conditions.
The growing Mean Dollar Invested Age (MDIA) on the Ethereum blockchain mirrors an increasing trend of ETH holders storing their coins in older wallets. The long-term ETH holders’ consumer loyalty reflects their decreased trading practices and their diminished belief in Ethereum’s immediate market direction.
A combination of deteriorating market conditions is made evident by the reduced activities of Ethereum addresses, which maintain possession of 0.1% to 1% of circulating supply. Significant investors monitor whether they possess more ETH coins than they are selling through this balance tracking metric. Overall, changing netflow statistics demonstrate that large Ethereum cryptocurrency holders convert their tokens to others at a faster rate than acquisition. Continuing extension of this trend would generate substantial resistance for Ethereum while it ascends toward $4,000.
The Ethereum supply located on exchanges supports this conservative approach. The metric measures external transactions that deposit ETH into exchange wallets. The decline of this market indicator frequently demonstrates that owners have resisted conventional sales activities with their assets. According to current market evaluation, recent movement statistics indicate that the total amount of ETH that entered exchanges since January 20 reached 340,000 units valued at $1.15 billion. The latest data shows that investors dump their cryptocurrency holdings through exchanges.
These market indicators demonstrate sustained low levels of market confidence alongside persistent serious obstacles. If the present indicators fail to show improvement, Ethereum will likely continue struggling with its long-awaited bullish shift.
ETH Price Prediction: Weak Trend Persists
Ethereum’s (ETH) daily chart displays an upcoming break from its 0.618 Fibonacci level pattern. Bulls should exercise caution because the Supertrend indicator continues to be positioned above ETH’s current trading price.
The Supertrend indicator displays an uptrend signal when it displays a green line below the price, marking it as a potential growth indicator for traders. The Supertrend also displays a downward red line, indicating potential resistance to Ethereum trading above $3,667. Resistance could prevent the asset from reaching a price test at $4,000.
A decline in buying pressure would steer ETH prices toward $3,024. In this situation, a bearish projection points to ETH descending to $2,768.
The Ethereum implementation of Layer 2 (L2) tokens demonstrates a key approach to countering future negative price movements. The bearish perspective depends on the growing demand for ETH tokens and related L2 solutions. If market conditions remain favorable, ETH could surpass $4,50,0, thus setting a new all-time high before this market cycle ends.
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