Vitalik Buterin says ‘Ethereum is Good’ – Is a move beyond $2.9k likely now?

• Vitalik’s post on social media sparks optimism among ETH investors.
• Ethereum is set for major price rebound.

Ethereum [ETH] co-founder, Vitalik Buterin, recently responded to the mounting pressure from investors, traders, and influencers on social media.

Buterin on X affirmed how he had been urged to focus more on Ethereum’s bullish prospects rather than philosophical topics.

“I have been told that I need to “do less philosophizing and do more ethereum bullposting”. Hence, here is an ethereum bullpost, courtesy of stable diffusion 3 inpainting + gimp.”

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Buterin’s post on X reading ‘Ethereum is Good’, was well-received, boosting optimism among those who were hesitant to invest due to the stagnation in ETH’s price over the past five months.

Despite other cryptocurrencies, including Bitcoin, reaching new all-time highs in 2024, Ethereum struggled to break its ATH.

Vitalik’s renewed involvement is expected to influence ETH’s price action, which has been on a downward trend since July 2024 when the daily candle closed at $3,440 price level.

Even though Ethereum rebounded slightly after the August 5th market crash, its price remains below the crucial $2,900 price level.

A breakout above this level could trigger a significant surge in ETH’s value, potentially reaching its 2024 highs.

Altcoins are set to explode

The broader altcoin market also shows promising signs. The total market cap of altcoins, excluding Bitcoin, recently bounced off a key support level, indicating potential growth.

Ethereum, as the leading altcoin, plays a crucial role in this market. The recent breakout in altcoin market cap and its rejection of previous resistance levels suggest a bullish trend could be on the horizon.

Vitalik Buterin’s tweet, coupled with these market signals, could mark a shift in sentiment, leading to a rise in ETH’s value.

Rise in whale activity and smart contracts

Whale activity on the Ethereum network has also increased. A significant whale has been moving large amounts of ETH to centralized exchanges (CEX) ahead of price drops.

In the past month, this whale moved 25,000 ETH ($73.9 million) to Kraken before two major price declines. Despite these movements, the whale still holds 41,639 ETH ($107 million), with an estimated total profit of $131 million.

Moreover, Ethereum’s scarcity is becoming more apparent as the amount of ETH locked in smart contracts approaches 40%.

This development is bullish for Ethereum, as any increase in demand could lead to a sharp price rise.

Is your portfolio green? Check out the ETH Profit Calculator

Considering all these factors, coupled with Vitalik Buterin’s positive tweet, Ethereum seems poised for long-term gains.

However, for now, it might be wise to adopt a cautious approach, gradually accumulating ETH in anticipation of a potential upturn.