Ethereum, one of the most important cryptocurrencies in the world, has been constantly trying to regain its previous price levels. Although 2023 started on a positive note, the rest of the year brought more problems along the way. August was particularly noteworthy, as the price points plummeted all across the crypto environment at the middle of the month. September continued the downward trend, something that was largely unsurprising given the historical trends recorded in the Ethereum price chart.
However, October is an entirely different thing, with the month sometimes being dubbed Uptober due to the gains cryptocurrencies typically record during this time. October 2023 was no exception, and the price is still in a good position. Many believe this is all it takes for ETH to go into the last months of the year and into 2024 on a positive note.
Since October 19th, Ethereum has grown by approximately 19%. However, the growth is still vulnerable to reversals. Ethereum must remain above the support levels at $1,727 and $1,650 to continue going higher. If the candlestick moves below $1,650, the bullish effort will be invalidated. The bulls must still defend these levels in order to maintain and support growth.
Going further, investors expect the price to retrace the previous barriers again and find the necessary support that will help move it forward. If there’s a strong bounce, the price could reach $2,000, a critical psychological level. The last time ETH succeeded in overcoming this hurdle was around the middle of April, but the victory was short-lived. Another move in this area will, consequently, be crucial for long-term development.
Whale investors have many resources available, and they are well-known for their considerable movements within the blockchain. Consequently, many look to them to create better strategies since the ways in which whale investors are trading provide others with much-needed information on how to pick a strategy that will ensure their success as well.
Now that bullish sentiment is returning to the market, whale activity has increased to a six-month high. At the same time, the Ethereum supply left on exchanges hit record lows not seen since 2015, according to recent data. The number of transactions valued at $100,000 or more climbed above 6,000 on October 24th, the highest number since April 2023. The supply dropped to 8.41%, the lowest level since July 2015, the time when ETH was first launched.
The rise of play-to-earn games has continued despite the troubles the cryptocurrency environment has been dealing with over the past year. Recently, the crypto game Upland raised $7 million ahead of the launch of an Ethereum token. The funds will go towards adding extra features to the game, which allows players to buy digital locations on a real-world map. The marketing strategy will also be improved, enabling the development of third-party tokens.
This is excellent news for those who have been wondering about the ability of the metaverse to remain relevant. According to Upland, it currently has over 3 million registered players, including roughly 30,000 daily active users. In the past, it has worked with large sports organizations, including FIFA and the NFL Players Association. It has also been expanding its number of locations across the United States, Europe and Latin America.
The game is built on the EOS network, and a spokesperson for the platform believes that although the buzz around the concept of the metaverse has lost some of its luster during the past year, the idea of the immersive web experience is alive and well and will continue to thrive. That is because it is more about the paradigm of how technology will unfold in the future rather than about a single concept. The introduction of more crypto-based games and features in the existing games also means that adoption rates for cryptocurrencies will continue to grow as well. However, this won’t happen overnight.
The ERC-4337 token standard introduced account abstraction without any changes to the fundamental Ethereum protocol. It was first proposed in 2021 and was eventually accepted and authorized in 2023 since it ensures zero consensus-layer changes to the protocol. The ERC-4337 aims to allow developers to customize smart contracts and wallets easily. This type of token also introduces a type of pseudo-transaction known as UserOperation.
This feature sends transactions directly on behalf of its user. The unconfirmed ones are stored separately. The nodes on the ETH blockchain can pick up multiple operations and pack them into a single bundle transaction. They are later sent to the global smart contract EntryPoint on the network. This feature has also led to the development of a social recovery abstraction wallet, which Buterin has called the best method for securing a device. This type of recovery allows account recovery access through all the whitelisted addresses, including those of family, friends or hardware wallets.
Account abstraction eliminates the reliance on seed phrases, reducing vulnerabilities associated with their hacking. It removes the possibility of human error and improves the overall security of the blockchain. Shared accounts and multi-user operationality become more straightforward as well. This way, transactions can only be executed after two or more users sign in. However, a crypto infrastructure film has also recently identified an abstraction vulnerability present within the Ethereum ecosystem.
Hundreds of mainnet wallets were reported to have this vulnerability during a white hat operation. According to the research, it could have allowed hackers to carry out full account takeovers through direct manipulation of the account abstraction process. Previously, Buterin discussed the challenges of improving abstraction functionality by outlining the necessity for an Ethereum Improvement Proposal to make the upgrade from EOA to smart contract. There should also be a guarantee that the protocol will work well with layer-2 solutions.
The bottom line
Ethereum has been going through a rough patch over the past months but is now slowly regaining its strength. The bullish rally has so far been holding on strong, and there are many who believe that the path towards growth is now clear. Yet, it’s important to remain cautious as the marketplace is still recovering, and fluctuations are still likely to appear.