Ethereum Price Prediction Heats Up—$1,800 in Focus as Vitalik Moves

Ethereum trades near $1,800 as Buterin proposes major protocol overhaul. Key support tested amid bullish AI potential and institutional...

Arslan Butt•Monday, May 5, 2025•2 min read

Quick overview

Vitalik Buterin proposes a major overhaul of Ethereum's architecture to simplify its consensus and execution layers.
The plan includes a '3-slot finality' mechanism and a shift to a RISC-V based virtual machine for improved scalability.
Buterin's changes aim to enhance developer experience and reduce fragmentation within the Ethereum ecosystem.
Despite criticisms, Ethereum continues to gain adoption from major companies and institutions, maintaining a strong market presence.

Vitalik Buterin is proposing a radical overhaul of Ethereum’s core architecture, and it’s a big deal. In a blog post titled “Simplifying the L1,” he outlined a plan to reduce technical complexity by reworking the consensus and execution layers.

His proposed “3-slot finality” would get rid of legacy mechanisms like sync committees and validator shuffling. The idea is simple: fewer moving parts, less attack surface, faster finality. He also wants to switch from the EVM to a RISC-V based, ZK friendly virtual machine.

This could make Ethereum more scalable and developer friendly with 100x faster ZK proof generation.

Key points from the proposal:

Simpler consensus layer with “3-slot finality”
RISC-V for ZK compatibility
Unified tooling and standards to reduce fragmentation

ETH/USD

Ethereum’s Role in Decentralizing AI

Buterin’s proposal comes as Ethereum is being seen as the backbone of decentralizing AI. Former core dev Eric Connor says Ethereum can solve AI’s biggest problems—centralized data control and black box algorithms. He argues Ethereum’s open architecture and transparent smart contracts is a much needed alternative to corporate AI models.

Meanwhile venture investor Nic Carter says L2 solutions are extracting value from Ethereum without giving back. He also warns of excessive token issuance which is a risk to ETH’s long term value.

Despite the criticism Ethereum is getting adoption across the board. Tech giants like Alibaba, financial institutions like Deutsche Bank, fintech leaders like Visa are all building on Ethereum.

Coinbase’s L2 Base, Circle’s USDC migration and Trump’s WLFI fund holding 94% of its crypto reserves in ETH is further validation of its use in real world applications.

ETH Price Holds $1,800—Watch $1,811 for Confirmation

At the time of writing Ethereum ETH/USD is trading at around $1,798 down 1.94% in the last 24 hours. With a market cap of over $217 billion it’s holding steady at #2 on CoinMarketCap.

Technically ETH has dropped below $1,811 now acting as near term resistance. The 50 period EMA is at $1,808 creating a cluster of resistance. MACD is negative indicating fading momentum.

The key pivot is $1,811 if reclaimed ETH could test $1,871 and potentially $1,910. If $1,764 fails to hold the next supports are $1,732 and $1,691.

Trade Setup:

Entry (bullish): Above $1,811 with volume
Entry (bearish): Below $1,764
Targets: $1,871 → $1,910 (up), $1,732 → $1,691 (down)
Stop Loss: Just beyond the breakout or rejection wick

Until $1,811 is reclaimed, patience is key.

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies
Open a FREE Trading Account

ABOUT THE AUTHOR See More

Arslan Butt

Lead Markets Analyst – Multi-Asset (FX, Commodities, Crypto)

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics. His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker. His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.