Crypto: Ethereum's triumphant return above $4,000, but for how long?

If a crypto has dragged its feet for a long time before climbing like bitcoin, it is ether. After months of waiting and mixed performances, the price of Ethereum has finally crossed the symbolic mark of 4,000 dollars, a first since March. This revival 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

Ethereum news: ether has finally regained color, reaching $4,000, an important psychological threshold for investors. This rise is explained by an increase of 10.7% in a week, supported by an improvement in general sentiment in the crypto market.

• Since August, the price has stagnated below the 200-day exponential moving average;
• THE Current RSI, at around 71signals an overbought zone, but analysts remain optimistic;
• Some predict a potential rise around $7,000 in this bullish cycle.

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

Ethereum facing the challenges of layer-2: a necessary overhaul?

All is not rosy for Ethereum, despite this rebound. Since the Dencun upgrade in March, Layer 1 revenue dropped 99% due to the rise of layer-2 solutions.

However, the costs began to rise in September, reaching $10.9 million on December 5compared to $500,000 in August.

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

This solution could:

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

This debate highlights the importance of adaptation in an ever-changing ecosystem.

In conclusion, Ethereum ETFs are massively attracting capital, with 9 consecutive days of positive flows. On December 5 alone, more than $430 million poured in, bringing the total to more than a billion in one week. A dynamic which confirms that, on the ether side, enthusiasm does not weaken.