While Ethereum (ETH) maintains an overall bullish trajectory, signs of a potential short-term correction are emerging. Ethereum co-founder Vitalik Buterin is actively working on proposals to improve staking security and minimize vulnerabilities, further fortifying the network. However, as the end of 2024 approaches, many expect a bullish period, but data indicates that a short-term dip could occur before that.
Short-Term Market Outlook
Despite a positive long-term market sentiment, some technical indicators suggest Ethereum may face brief volatility. The ETH Short-Term Bubble Risk indicator has recently turned bearish, signaling that a small correction might be near. This stands in contrast to the generally optimistic outlook for the crypto market.
Price Movement and Correction Potential
On the ETH/USDT chart, Ethereum recently surpassed the 200 Exponential Moving Average (EMA) on the 4-hour time frame, which is a key signal for short- to medium-term trends. Ethereum is eyeing the $2,800 level, a crucial price point that must be broken to confirm the end of this short-term correction. Should Ethereum breach this level, a run towards $3,000 becomes possible. However, the MACD indicator is showing bearish momentum, suggesting Ethereum may require more consolidation before a full bullish reversal takes hold.
Vitalik Buterinâs Security Proposals
Vitalik Buterin has put forward strategies to address security concerns within Ethereum staking, particularly in terms of mitigating risks from large node operator bribery and enhancing decentralization by encouraging more solo stakers. Solo stakers are vital in preserving Ethereumâs resistance to censorship and maintaining network security.
Market Sentiment and Future Prospects
According to Santiment, Ethereum's market value has bounced back to nearly $2,700, sparking renewed interest across social media and trading platforms. Wallet activity has hit a 7-week high, indicating strong market engagement. These factors suggest that while Ethereum may experience a short-term correction, its long-term growth prospects remain solid. Once the current dip concludes, Ethereum's price could be poised for further upward momentum as market activity continues to increase.
In summary, Ethereum is likely to navigate through a temporary correction phase but remains positioned for growth. Increased social media buzz, wallet activity, and Buterinâs proposed security measures all contribute to a positive long-term outlook.
