Ethereum price started a downside correction from the $3,520 zone. ETH is stable above $3,420 and might attempt another increase in the near term.

• Ethereum started a downside correction after it failed to surpass the $3,520 zone.
• The price is trading above $3,420 and the 100-hourly Simple Moving Average.
• There is a connecting bearish trend line forming with resistance near $3,470 on the hourly chart of ETH/USD (data feed via Kraken).
• The pair must clear the $3,470 and $3,520 resistance levels to continue higher.

Ethereum Price Corrects Lower

Ethereum price started a decent upward move above the $3,420 level. ETH even cleared the $3,450 level to move into a short-term positive zone like Bitcoin.

The price even cleared the $3,500 resistance zone. A high was formed at $3,516 and the price recently started a downside correction. There was a move below the $3,480 and $3,470 levels. The price declined below the 23.6% Fib retracement level of the upward move from the $3,350 swing low to the $3,516 high.

However, the bulls seem to be active near the $3,420 support zone. They are protecting the 50% Fib retracement level of the upward move from the $3,350 swing low to the $3,516 high.

Ethereum is trading above $3,420 and the 100-hourly Simple Moving Average. On the upside, the price is facing resistance near the $3,470 level. There is also a connecting bearish trend line forming with resistance near $3,470 on the hourly chart of ETH/USD.

The first major resistance is near the $3,500 level. The next major hurdle is near the $3,520 level. A close above the $3,520 level might send Ether toward the $3,550 resistance. The next key resistance is near $3,650. An upside break above the $3,650 resistance might send the price higher. Any more gains could send Ether toward the $3,720 resistance zone.

Are Dips Supported In ETH?

If Ethereum fails to clear the $3,470 resistance, it could continue to move down. Initial support on the downside is near $3,435. The first major support sits near the $3,420 zone.

A clear move below the $3,420 support might push the price toward $3,350. Any more losses might send the price toward the $3,320 level in the near term.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is losing momentum in the bullish zone.

Hourly RSI – The RSI for ETH/USD is now below the 50 zone.

Major Support Level – $3,420

Major Resistance Level – $3,470

Ethereum co-founder Vitalik Buterin has outlined new methods to enhance transaction confirmation times on the Ethereum network.

In his latest blog post, Buterin proposes a novel approach in which each block is finalized before creating the next one, aiming to speed up transaction confirmations and user experience greatly.

Buterin Aims to Make Ethereum Transactions Faster

Historically, Ethereum has never led in transaction speeds among blockchain networks. Although, after the infamous Merge, transaction time has lowered to 5-20 seconds, other chains are twice as fast.

According to a report CoinGecko released in May 2024, Ethereum does not even rank on the top 10 for fastest chains. Solana, SUI, and Binance Smart Chain are currently leading the way.

Read more: Who Is Vitalik Buterin? An In-Depth Look at Ethereum’s Co-Founder

Now, Buterin suggests a new method called single-slot finality. Currently, Ethereum’s Gasper consensus takes about 12.8 minutes to finalize transactions. Single-slot finality would streamline this process, greatly reducing the waiting time.

“Over the last couple of years, we’ve become more and more uncomfortable with the current approach. The key reasons are that (i) it’s complicated, and there are many interaction bugs between the slot-by-slot voting mechanism and the epoch-by-epoch finality mechanism, and (ii) 12.8 minutes is way too long, and nobody cares to wait that long,” Buterin emphasized.

The need for improved transaction speed is crucial as the markets near Ethereum spot exchange-traded fund (ETF) approval in the US and investors are closely monitoring the cryptocurrency’s competitive market. Currently, Ethereum sits at $3,389, with a 1.24% increase over the previous 24 hours.

Buterin also focuses on using layer 2 solutions, or rollups preconfirmations, which process transactions faster using smaller groups of validators. As a result, this allows Ethereum’s main layer (L1) to focus on its core functions, like stability, resistance to censorship, and security. The job of layer-2 is to provide a better user experience, speed up transactions, and adapt to different needs.

However, because users still want faster transaction speeds, L2s will create their own systems to confirm transactions quickly. He notes that this process is complicated and is similar to building an entire blockchain layer.

Another proposal is to let users pay extra fees for immediate transaction confirmations. This system, called based confirmations, would use Ethereum proposers to guarantee transaction inclusion in the next block. If they fail, they face penalties, ensuring reliability.

Read more: Ethereum ETF Explained: What It Is and How It Works

Ultimately, Buterin sees these changes as achievable, but the concept remains an idea, with no news on its implementation or timelines.

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