Ethereum co-founder Vitalik Buterin highlighted that core developers need to work to lower the staking requirements to 1 ETH to further enhance network decentralization.
Amid the ongoing crypto bearish outlook, which has seen the total market valuation slip by over 3 percent to hover about $2.1 trillion on Thursday, Ethereum ETH $3 960 24h volatility: 0.8% Market cap: $477.93 B Vol. 24h: $12.33 B price led the top-tier altcoins in a bearish outlook. The large-cap altcoin, with a fully diluted valuation of about $282 billion and a daily average traded volume of around $22 billion, declined over 4.2 percent in the past 24 hours to trade about $2,346 on Thursday during the early New York session.
Despite beginning the fourth quarter in a choppy mode, contrary to the crowds’ expectations, Ethereum price could be forming a potential bullish pattern. From a technical standpoint, Ether price is currently retesting a crucial support level, which could catch most bears by surprise.
Furthermore, the top-tier altcoin has been forming a potential reversal pattern characterized by an inverted head and shoulders (H&S) shape coupled with a bullish divergence in the daily Relative Strength Index (RSI).
The bullish reversal pattern will, however, be invalidated if Etherprice consistently closes below the support level of around $2,121. In such a situation, nothing will stop the bears from pushing Ether price below $2k towards $1,954.
However, the former situation has a higher probability since the crypto market is likely to rebound and follow Gold and major stock indexes.
The upcoming US elections, amid a shifting global economic outlook and rising geopolitical tensions, will be major bullish factors for the entire crypto industry in the coming months.
Buterin’s Plans to Revitalize Ethereum
According to Ethereum co-founder Vitalik Buterin, the current threshold of 32 ETH to achieve a validator position is high enough to lock out mainstream decentralization. As a result, Buterin has proposed a pathway to reducing the minimum staking requirement to 1 ETH in the long haul.
I think there's a sane version of this where we recognize that 32 ETH is much more of a barrier than bandwidth reqs, and temporarily do a trade where we up the bandwidth reqs a bit and in exchange drop the staking deposit minimum to eg. 16 or 24 ETH.
It's net-good for both…
— vitalik.eth (@VitalikButerin) October 3, 2024
According to Buterin, the core developers should work on increasing the bandwidth requirement in exchange for lowering the overall staking requirements to 16 or 24 ETH. As the Ether core developers work on the PeerDAS upgrade and the Orbit SSF, Buterin highlighted that the ultimate goal will be to lower the staking limit to 1 ETH.
Ether Whales Moves to the Sideline
The past few weeks have been treacherous for the Ethereum market, as on-chain data shows whales have been actively selling. In addition to the Ethereum Foundation which has sold nearly $10 million year-to-date to cater for its expenses, the US spot Ether ETFs have registered notable cash outflows in the recent past.
Since the approval of the US spot Ether ETFs, more than $557 million have been liquidated led by Grayscale’s ETHE.
Earlier today, an Ethereum ICO wallet sold around 19K ETH, worth around $47 million, thus weighing down the bullish sentiment.
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