Ethereum Soars Past 2021 Peak, Buterin Warns of Network Centralization Risks
On Sunday, Ethereum has reached $4,900 on Coinbase, thereby entering price discovery.
Quick overview
- Ethereum reached $4,900 on Coinbase, entering price discovery after breaking its previous ATH of $4,867.
- Analysts are divided on whether there will be a pullback or a supply-shock upside for Ethereum.
- Vitalik Buterin warns of potential risks to Ethereum's neutrality due to power concentration among block builders.
- He proposes Fork-Choice Enforced Inclusion Lists (FOCIL) to improve transaction inclusion, though it relies on the goodwill of validators.
On Sunday, Ethereum has reached $4,900 on Coinbase, thereby entering price discovery. Analysts are divided between a potential Monday pullback and a supply-shock upside.
At 5:40 p.m. UTC on Sunday, Ethereum (ETH) broke its previous ATH of $4,867 set on Nov. 8, 2021, and broke into new territory by clearing $4,900..
TradingView’s five-year ETH-USD price chart displays a clear, multi-year breakout: After a protracted consolidation, ETH has finally soared above the 2021 high, leaving no historical overhead levels to rely on.
The leadership change was described up by analyst Miles Deutsher as “ETH isn’t exhausted, but BTC is.” To put it simply, he is losing relative momentum: ether has only begun to price discover, while bitcoin’s rallies have halted close to previous highs.
When the market says an asset is “exhausted,” it typically suggests that sellers are continuing to meet pushes higher, follow-through is weak, and upside attempts are fading; when it says “isn’t,” it means that there is active dip-buying, better follow-through, and new highs. When the other leader wears down, traders frequently shift their focus to the asset exhibiting greater relative strength.
Meanwhile, Vitalik Buterin cautions that the Ethereum’s neutrality is under danger due to the concentration of power within a small number of block builders. He suggests a number of solutions to address this, the most ambitious of which, called FOCIL, would reinterpret the inclusion of cryptocurrency transactions.
The idea behind Fork-Choice Enforced Inclusion Lists (FOCIL) is straightforward but revolutionary: ETH would have several proposers per slot rather than just one. The order of the transactions is determined by one proposer, and the other proposers are required to ensure that the transactions are included in the block.
Furthermore, the developer highlights a flaw in the structure: FOCIL depends on the goodwill of validators to incorporate sensitive transactions without any genuine motivation or assurance. Put another way, it’s a compelling concept for Ethereum and the cryptocurrency ecosystem as a whole. A lovely idea, but one that could not work out in reality
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