TLDR
- Ethereum (ETH) is trading above $1,600, with a recent gain of 1.7% in a 24-hour period
- Vitalik Buterin proposed replacing Ethereum Virtual Machine with RISC-V architecture to improve scalability, potentially increasing speed by up to 100x
- Whale activity shows accumulation, with one entity withdrawing 1,897 ETH from Bitget exchange
- Technical indicators point to increasing momentum, with resistance at $1,650-$1,700
- Ethereum network usage metrics show declining fees, raising questions about its long-term value proposition
Ethereum (ETH) is trading above the $1,600 mark early on Monday, showing a gain of around 1.7% in the past 24 hours. The second-largest cryptocurrency by market cap is finding support from both on-chain activity by large investors and a new proposal from co-founder Vitalik Buterin.
The price stability comes as ETH/USD shows strength in the market despite recent challenges. Ethereum has remained steady above key support levels while showing signs of possible upward momentum.
Large investors, often called “whales” in crypto terminology, have been actively accumulating Ethereum. According to data from Lookonchain, a prominent whale recently withdrew 1,897 ETH (worth approximately $3 million) from the Bitget exchange.
This withdrawal is part of a larger pattern from the same entity, which has removed a total of 3,844 ETH (about $6.51 million) since April 3. Such accumulation often signals confidence in an asset’s future value.
The cryptocurrency’s technical indicators suggest increasing momentum. The Relative Strength Index (RSI) is moving upward on daily charts, approaching the neutral level of 50.
Meanwhile, the hourly Moving Average Convergence Divergence (MACD) has entered bullish territory. These metrics point to declining bearish momentum, though analysts note the RSI needs to rise above 50 for a sustained positive trend.
Buterin’s Revolutionary Scaling Proposal
Perhaps the most important development supporting Ethereum’s price is a radical proposal from co-founder Vitalik Buterin. On April 20, Buterin suggested replacing the existing Ethereum Virtual Machine (EVM) with the RISC-V instruction set architecture.
This change aims to address several long-term hurdles impeding Ethereum’s scalability. These include zero-knowledge EVM proving, competitive block production, and reliable data availability sampling.
The RISC-V implementation could potentially increase efficiency by up to 100 times, particularly by maximizing zero-knowledge functions for the execution layer. This would maintain the fundamental account and storage concepts of the Ethereum blockchain while enhancing speed and efficiency.
“The beam chain effort holds great promise for greatly simplifying the consensus layer of Ethereum, but for the execution layer to see similar gains, this kind of radical change may be the only viable path,” Buterin wrote in his proposal.
If implemented, this change could dramatically alter Ethereum’s competitive position against high-throughput rivals like Solana and Sui networks.
Network Usage and Price Outlook
Despite the temporary price recovery, Ethereum’s network metrics present a mixed picture. Blob fees from layer-2 scaling networks fell to a weekly low of 3.18 ETH (about $5,000) on March 30.
Network fees dropped to their lowest level since 2020 in April 2025, with an average transaction value of approximately $0.16. This steep decline in fees reflects fewer users making transactions on the Ethereum base layer.
Many users are choosing layer-2 scaling solutions, which have effectively reduced transaction costs but have also “cannibalized” income on the base layer. This trend raises questions about Ethereum’s long-term value proposition.
Looking at price action, Ethereum started a fresh increase above the $1,580 and $1,600 levels, entering a short-term positive zone. There was a break above a bearish trend line with resistance at $1,590 on the hourly chart.
ETH is now facing resistance near the $1,640-$1,650 levels. If it manages to break above $1,650, the next major resistance would be near $1,680, followed by $1,720.
On the downside, initial support sits near $1,620, with major support at $1,605. A move below these levels could push Ethereum toward the $1,580 or even $1,550 support zones.
Market observers are watching both technical breakouts and the approaching $1,650-$1,700 resistance levels, which could trigger a more substantial rally if breached.
As Ethereum navigates these technical levels, the implementation timeline of Buterin’s proposal remains uncertain but continues to generate interest among investors and developers alike.
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