Crypto: Triumphant Return Of Ethereum Above $4,000, But For How Long?

If a cryptocurrency had long dragged its feet before soaring like Bitcoin, it is indeed Ether. After months of waiting and lackluster performances, the price of Ethereum has finally crossed the symbolic threshold of $4,000, a first since March. This resurgence comes after months of stagnation and marks a turning point fueled by solid technical and economic factors.

Crypto ETH: a strong comeback against the backdrop of a bullish rally

The Ethereum news: Ether has finally regained its color, reaching $4,000, a significant psychological threshold for investors. This surge is explained by a 10.7% increase in a week, supported by an improvement in general sentiment in the crypto market.

• Since August, the price was stagnating below the 200-day exponential moving average;
• The current RSI, at about 71, signals an overbought area, but analysts remain optimistic;
• Some expect a potential rise towards $7,000 in this bullish cycle.

The electoral victory of Donald Trump may have also acted as a catalyst. From a technical standpoint, this optimism reflects the dynamism of the Ethereum ecosystem, with increased developer activity and record flows into crypto ETFs.

Ethereum faces the challenges of layer-2: a necessary redesign?

Not everything is rosy for Ethereum, despite this rebound. Since the Dencun upgrade in March, layer 1 revenues have fallen by 99% due to the rise of layer-2 solutions.

However, fees began to rise again in September, reaching $10.9 million on December 5, up from $500,000 in August.

To save its economic model, Justin Drake, a researcher at the Ethereum Foundation, proposes a major innovation: the introduction of a native sequencer for layer 1.

This solution could:

1. Reduce cannibalization by layer-2;
2. Enhance composability between dApps and rollups;
3. Preserve the attractiveness of the base layer.

This debate highlights the importance of adaptation in a constantly evolving ecosystem.

In conclusion, Ethereum ETFs are massively attracting capital, with 9 consecutive days of positive flows. On December 5 alone, over $430 million flowed in, bringing the total to over a billion in a week. A momentum that confirms that, on the Ether side, enthusiasm is unabated.