ETH is witnessing increased acceptance from financial institutions.
ETH is experiencing reduced trading activity at the moment.
Ethereum [ETH] is on the brink of transformative developments, driven by ongoing protocol improvements and increasing acceptance from major financial institutions.
Recently, a trillion-dollar bank announced plans to launch a tokenized treasury on the network, further solidifying the legitimacy and potential demand for its ecosystem.
These factors raise an important question: how will these advancements affect the price trajectory of Ethereum?
Ethereum's scalable and sustainable roadmap
One of the boldest moves on Ethereum's roadmap is The Purge, an initiative aimed at optimizing the network by reducing storage and computational pressure on node operators.
Vitalik Buterin has emphasized the importance of this step as Ethereum's data footprint continues to grow. Without this change, few individuals or organizations may be able to maintain a full node, posing a risk of centralization.
The Purge aims to address these challenges by introducing mechanisms for historical expiration and state, allowing nodes to operate without extensive historical data storage.
This approach is expected to lower operational costs for node operators, potentially making participation more attractive for organizations.
However, the impact on ETH's price may take time; it largely depends on how clearly the benefits of this upgrade become recognized and accepted across the network.
Acceptance from organizations could drive demand for Ethereum
A major bank recently announced plans to issue a tokenized treasury on the Ethereum network, marking Ethereum's appeal to large financial institutions.
Tokenized treasuries offer fast, secure transactions and represent a multi-billion-dollar application space, highlighting ETH's role as a leading platform for digital assets.
This trend could significantly boost demand for ETH, as transactions on the network require ETH for processing and security.
Furthermore, the price of Ethereum could face upward pressure if the momentum from these organizations continues, especially if more banks and financial entities choose the network for tokenized assets.
Such acceptance reinforces confidence in the long-term utility of Ethereum, potentially bolstering ETH's position in the market.
Short and long-term prospects of ETH
From a technical perspective, the price of Ethereum shows signs of consolidation with potential for upward movement. Trading near $2,498, it lies just below the 50-day moving average, indicating slight bearish sentiment in the short term.
The Chaikin Money Flow (CMF) indicator shows a slight outflow of capital, while the RSI hovers around 46, signaling limited buying activity.
Source: TradingView
However, if acceptance from organizations increases and the benefits of The Purge become clearer, ETH could break through the $3,000 mark. A breakout could further drive ETH's price upward.
Conversely, if interest from organizations does not sustain or The Purge is not implemented in a timely manner, ETH could test support levels around $2,200. This is a crucial support level; falling below it could lead to deeper declines.
Moreover, in the long term, the expanding infrastructure and the appeal from financial institutions create an optimistic outlook. As these developments mature, potential price targets could extend into the $3,500–$4,000 range.
Stay tuned for updates.
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