Ethereum Drops 1.558% as Buterin Calls for Protocol Simplification

Ethereum's latest price was $1806.72, down 1.558% in the last 24 hours. Ethereum co-founder Vitalik Buterin has called for the simplification of the Ethereum protocol to enhance its efficiency and resilience. In a recent blog post, Buterin emphasized the importance of simplicity in achieving scalability and resilience for blockchain networks. He highlighted how the Bitcoin blockchain serves as a model of simplicity, noting that even a high school student could understand its protocol. Buterin proposed several ways to simplify the Ethereum network, including optimizing the consensus layer with a 3-slot finality redesign and replacing the Ethereum Virtual Machine (EVM) with a new minimal virtual machine. He also stressed the importance of maintaining backward compatibility for existing applications while making these changes. Buterin concluded that simplicity is crucial for achieving resilience in blockchains, similar to decentralization.

Ethereum has seen a significant amount of Ether withdrawn from centralized exchanges, indicating a trend of accumulation among investors. Over $380 million worth of Ethereum was withdrawn from centralized trading platforms in the past week. This net outflow suggests that investors are moving their assets into self-custody, which is often a sign of long-term conviction. The data shows five consecutive days of negative exchange netflows across aggregated platforms spanning 19 crypto exchanges. The last positive inflow of Ethereum on these exchanges was on April 27, with $50 million worth of ETH. This behavior mirrors previous price action where decreasing exchange balances acted as a precursor to sustained rallies. The current withdrawal trend coincides with the Ethereum price pushing back above the $1,800 mark, suggesting that investors may be preparing for a rally.

Crypto analyst Ali Martinez has identified a crucial Ethereum support level at $1,770. According to Martinez, this region is currently the most significant level for Ethereum in the short term, citing data from IntoTheBlock’s “In/Out of the Money Around Price” model. The model shows a high concentration of wallets (roughly 4.5 million addresses) having acquired 6.36 million ETH between $1,772 and $1,824. These holders are now “in the money” following Ethereum’s return to $1,845, making this zone a psychological stronghold. The implication of this support zone is clear: if Ethereum sustains above this demand cluster, the probability of further upward movement increases. However, any retracement below $1,770 could invalidate the current bullish structure and expose Ethereum to downside volatility. For now, the net flows from exchanges indicate that Ethereum might be able to hold its ground around this $1,770 level. The less Ethereum available on exchanges, the less selling pressure. On the other hand, the next resistance cluster to get above in the short term is at $1,881.