News Scrap

Ethereum, the second largest crypto asset by market capitalization crossed the $4000 price threshold for the second time in over three months today. 

The crypto asset hit $4,012 in the early hours of Monday as it closes in on its three-year all-time high of $4,878. 

This is the second time Ethereum has crossed this price level this month after spending two full months beneath it. Ethereum last hit $4000 on Dec 6 before dropping to $3986 the next day. 

The crypto asset did not cross this price level throughout the November bull run even as Bitcoin smashed its all-time high. 

Ethereum Price action on a three-month scale : Source: Coingecko 

Ethereum has faced mounting criticisms over the months 

Ethereum has faced serious criticisms from the global crypto community for a range of diverse issues. Many have predicted that Solana would eventually flip the crypto assets market capitalization as the blockchain grows unpopular with each passing day. 

This of course affects its price having failed to beat its All time high for three years. 

Camila Russo, journalist at Defiant News in an X post highlighted some of the issues plaguing the Ethereum Blockchain and how it weighs down on its price. 

Disappointing to see leaders of the ethereum community unwilling to acknowledge what’s wrong with the chain and blame underperformance on “people are dumb and don’t get it” 

Ethereum has real problems right now and that’s what’s weighing on price. 

Maybe those problems are getting worked on, are temporary, and will be solved down the line, but the risk that it doesn’t happen or happens too slowly to keep up with the competition is being priced in. 

Some major problems for ETH price right now: 

— L2s parasitic to L1 (value of activity happening in ETH ecosystem accrued mostly to L2s, not ETH) 

— Bad UX, including double tx approvals, fragmentation across mainnet, and multiple L2s (driving users/activity to other chains) 

I think it takes some degree of arrogance to dismiss these concerns.” Camila stated 

Prolific Ethereum community Eric.Eth reacted to some of these criticisms ethereum has faced over the months admitting the blockchain has some flaws. 

However, he reminded the community that Ethereum remains the only blockchain adhering to the core value of true decentralization. He believes ethereum is a Multi-decade play and is still on the right path to emerging on top. 

Price Analysis 

At the time of the report, Ethereum is exchanging hands for $3,955 surging by 1.3% in the last 24 hours and 25.7% on a one-month scale. The crypto asset is currently 18.9% down from its all-time high of $4,878.