Ethereum is down again! The largest altcoin continues to disappoint investors as it struggles to rise above the $2,000 price level. The Ethereum Foundation has already announced the last date for Sickness in August. But the current trajectory is a sad sight for the community as it stumbles upon the price chart.
A cause for concern?
The price of Ethereum has not held steady since the start of the year, with macro factors being responsible for a fresh bearish run. The recent bear market trend was confirmed with the equity market already in crisis. The current economic climate is certainly becoming a cause for concern for Ethereum maximalists.
ETH is currently trading below $1,900 after a decline of 3.2% over the past 24 hours. The “down south” trip due to the declining volume of the Ethereum network is also related. On the previous day alone, trading volume fell by 6.99% to $12,963,534,872.
The recent Glassnode update has shed further light on the state of the Ethereum blockchain around transaction activity. According to TweetExchange outflow volume hit a new 16-month low today after dropping to $17,660,927.
The last such low was seen on March 14th with outflow volume of $17,850,030. This comes across as a sad sight for investors with the merge launch now certain and scheduled after years of planning.
another glassnode Tweet The previous day indicated a declining volume. There has been a sharp drop in the number of active addresses, reaching a 10-month low of 29,700. This statistic was previously seen ahead of Ethereum’s November 2021 rally to an all-time high.
ETH suffers longest “reorg” in years
The Ethereum Beacon chain today suffered a seven-block restructuring that is the longest it has seen in years. This “reorg” is believed to pose a potential security risk to users, with Gnosis co-founder Martin Kopelman also expressing his concerns. In a Twitter thread, he urged the Ethereum Foundation to look into the matter carefully and rectify the situation appropriately.
Unforeseen circumstances with a network failure could lead to a reorganization that could temporarily create a duplicate blockchain. The reorganization could lead to security breaches that could potentially damage the blockchain. “This suggests that the current validation strategy of nodes should be re-evaluated to create a more stable chain than is expected,” Kopelman said.
What is important here is that Ethereum will soon go through a hard fork and these issues should not occur on “ETH 2.0”. This restructuring has come on time and will give Buterin and his team something to think about.