- Ethereum Price Expectations: Vitalik Buterin hints at an "embedded" upgrade to the L1 network inspired by the Safer Bank approach:

- Ethereum Price Today: $1960
Vitalik Buterin, co-founder of Ethereum, revealed plans for the future of blockchain technology in response to comments about network shutdowns.
Buterin proposed an upgrade called "Unattractive and cryptography-based Ethereum" as an alternative to the current system.
Ethereum needs to recover its 20-day exponential moving average to mitigate downside risks.
Vitalik Buterin, co-founder of Ethereum, sparked excitement in the crypto community with his latest vision for the future of blockchain technology.

In a post on X last Friday, Buterin rejected calls to abandon the current Ethereum network due to issues like sharding caused by layer two solutions and institutional influence. Instead, he suggested building a "robust, cryptography-principled Ethereum" as a tightly integrated addition to the existing system.

The idea aims to revive Ethereum’s original ideals of decentralization, privacy, and censorship resistance without disrupting its ecosystem.

Buterin’s plan includes developing a new extension alongside the mainnet, integrating key cryptographic features into the base layer, such as stronger censorship resistance, zero-knowledge proof compatibility, and simpler consensus mechanisms.

He envisions a five-year timeline, which could be accelerated through AI programming and verification, to optionally migrate the old system to smart contracts on the updated framework.

Building on the success of Ethereum’s "Merge" upgrade in 2022, Buterin believes the network can handle four more major transitions, including restructuring the state tree and a complete overhaul of the virtual machine.

He wrote: "Ethereum has already made changes to the engine while flying once during the (Merge), and we can do this about four more times."

This proposal comes amid increasing discussions about Ethereum’s scaling strategy. For years, the roadmap focused heavily on layer two solutions (L2) to handle large transaction volumes off the mainnet. However, Buterin recently pointed out that layer two (L2) has achieved slower decentralization than expected, while the main layer has evolved rapidly, making the original vision outdated.

- Ethereum Price Expectations: A recovery above the 20-day exponential moving average could reduce downside risks.
Ethereum’s network experienced liquidations totaling $35.4 million in the past 24 hours, led by short liquidations of $18 million, according to Coinglass data.

On the daily chart, the ETH/USDT pair is trading at $1967. The 20-day exponential moving average (EMA) is trending downward at $2123, limiting rebounds and indicating a prevailing bearish bias.

Immediate resistance is at $2107, followed by $2388. Support levels are at $1741 and $1524. Closing above the 20-day EMA could ease bearish pressure and open the market toward $2388 and then $2746, while breaking below $1404 could signal further weakness.

Daily chart of ETH/USDT

The Relative Strength Index (RSI) and the Stochastic Oscillator (Stoch) are below their neutral levels, indicating ongoing bearish momentum.