Ethereum News: ETH Faces Further Decline Risk After Recent Crash, Price Testing $2,100 Support

Ethereum, the second-largest cryptocurrency by market capitalization, has been on a downward spiral in recent weeks, sparking concerns among investors. Here’s a detailed analysis of its current price action and what the future holds for ETH.

Will ETH Stabilize After a 20% Weekly Crash? Ethereum Price Analysis

Ethereum has been experiencing a significant downtrend, breaking below several key support levels including $2,900, $2,700, and $2,350. The price is currently testing the $2,100 support zone. If this level breaks, a further decline towards $1,750 could be expected in the coming months. The 4-hour chart indicates a consistent pattern of lower highs and lows over the past couple of months.

Ethereum Derivatives Metrics Signal Modest Downside Tail Risk Ahead

Ether (ETH) is down along with the rest of the crypto market. Market intelligence platform Nansen analyzed Ethereum derivative metrics and found that the cryptocurrency faces more downside tail risk in the coming days. Current implied volatility levels for ETH suggest low expected price movement, but analysts believe this may be a misjudgment due to recent price movements. Nansen evaluated Ethereum derivatives metrics on Deribit and found that while the ETH options market still has a bullish bias, the significant call-side positioning appears increasingly at risk.

Ethereum Foundation Announces Co-Executive Leadership Restructure

The Ethereum Foundation has announced a restructure in its leadership, with Wang and Stanczak assuming roles as co-Executive Directors effective March 17. This transition follows calls for structural changes within the organization. Wang, a seven-year researcher at the Foundation with a focus on the Beacon Chain, and Stanczak, with a strong leadership background from Nethermind, will play a key role in shaping the Foundation’s future while maintaining their commitment to Ethereum’s broader ecosystem.

Ethereum Researcher Proposes Solution to Centralization Issues

An Ethereum researcher, Malik672, has proposed a solution to address centralization issues. The proposal suggests implementing a ’shared random algorithm’ leveraging Byzantine Fault Tolerance (BFT) to remove Maximal Extractable Value (MEV) at the block level. This will enable a fully democratized block proposal, accelerating propagation. Malik672 noted that compared to the Proposer-Builder Separation (PBS), the proposal prioritizes trustlessness over optimization, providing a transformative shift for Ethereum. Due to Ethereum’s proof-of-stake model and the PBS feature, MEV concentration has led to centralization among builders and relays.