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Ethereum has dipped below the critical $1,600 level after briefly reaching a daily high of $1,653. This price movement aligns with Bitcoin’s recent rally, as Ethereum initially broke key resistance levels at $1,600 and $1,620 before encountering selling pressure that halted its upward trajectory.

Currently trading near $1,575, Ethereum (ETH) has experienced a 3.10% decline over the past week. This data reflects the ongoing fluctuations in the cryptocurrency market, as investors weigh recent developments and market sentiment.

Vitalik Buterin Proposes RISC-V for Ethereum Virtual Machine

Ethereum co-founder Vitalik Buterin has suggested replacing the Ethereum Virtual Machine (EVM) with RISC-V, a move aimed at enhancing performance and scalability. According to Buterin, RISC-V, which is already utilized in zero-knowledge EVMs, has the potential to improve proving efficiency by over 50 times.

The proposal preserves backward compatibility while shifting backend computational processes to RISC-V. This development comes at a time when Ethereum is facing multi-year lows in both network activity and transaction fees, prompting discussions about the blockchain’s future scalability and efficiency.

Market Outlook: Will Ethereum Decline Further?

Despite the recent downturn, Ethereum has shown signs of resilience by maintaining higher lows, indicating that buyers remain active. Analysts note that ETH has broken out of its downtrend for the first time since February 2025, a positive signal for long-term investors.

If Ethereum can sustain the $1,600 support level, it could potentially climb to $2,000 in the coming months. However, more bearish predictions, such as those from veteran commodity trader Peter L. Brandt, suggest that Ethereum could revisit lows around $800, a level last seen in 2022.

Key Factors to Watch

  • Market Sentiment: Monitor investor confidence and trading volumes to gauge Ethereum’s short-term direction.
  • Technical Levels: Keep an eye on the $1,600 support level and resistance areas like $1,620 and $2,000.
  • Network Activity: Declining transaction fees and activity could impact Ethereum’s price performance.
  • Core Developments: Updates such as the RISC-V proposal could influence long-term scalability and adoption.

While Ethereum’s price remains volatile, its long-term potential continues to attract both institutional and retail investors. As market conditions evolve, keeping informed about technical developments and market trends will be crucial for making informed investment decisions.

Disclosure: This article is for educational purposes only and does not constitute investment advice. Always conduct thorough research before making financial decisions.

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