Ethereum Drops 3% Amid Security Debate, Key Levels in Focus

Ethereum's latest price was $2474.61, down 3.003% in the last 24 hours. Ethereum researcher Justin Drake has highlighted the differences in security between Bitcoin and Ethereum, particularly in the context of 51% attacks. Drake argues that while a 51% attack on Bitcoin would be very expensive, it is still feasible. In contrast, Ethereum's Proof-of-Stake (PoS) security mechanism makes such an attack much more difficult and costly. Drake's views align with those of Grant Hummer, co-founder of Etherealize, who estimated the cost of a Bitcoin 51% attack at around $8 billion and suggested that if this cost drops to $2 billion, a successful attack on Bitcoin is almost inevitable. Hummer also points out that Bitcoin's "security budget" is declining, which could make it easier for a single entity to dominate the network and threaten its decentralized system.

Drake emphasizes that Ethereum's PoS design requires controlling at least half of the network to have an effect, which is currently not feasible given the amount of ETH being staked. Additionally, Ethereum's "social layer" adds another layer of defense, relying on the collective action of the network's community to identify and penalize malicious actors through social slashing, a process unavailable in Bitcoin's proof-of-work (PoW) framework. Industry experts have mixed opinions on the feasibility of such attacks. Matan Sitbon, CEO of Lightblocks, believes Ethereum's security relies on community support, while Pavel Yashin suggests that Ethereum can deal with centralized threats by forking the network. Hassan Khan, CEO of Ordeez, admits to the theoretical risk but states that the high energy requirements make a sustained 51% attack on Bitcoin unlikely.

Ethereum is at a critical juncture following a recent rally that pushed it above several key resistance levels. The network is now consolidating above the $2,400 mark, with bulls and bears battling for control. To sustain the current bullish momentum, Ethereum must hold above $2,400 and retake the $2,800 level. A confirmed breakout above $2,800 could ignite a broader rally and signal the start of a long-awaited altseason. New data from CryptoQuant reveals that smart money is accumulating ETH quickly, suggesting growing confidence among institutional players and long-term investors. All eyes are now on how Ethereum reacts at these levels, as a successful defense of support and a breakout above resistance could set the stage for a strong continuation. However, failure to hold above $2,400 would likely invite more downside pressure and delay further bullish advances.

Ethereum is showing renewed bullish strength as market sentiment turns optimistic across the crypto landscape. After surging more than 50% in recent weeks, ETH is holding above the $2,400 level, a key support zone that traders and analysts alike are watching closely. To solidify a bullish phase and confirm the start of a sustainable rally, bulls must push Ethereum decisively above the $2,800 mark. This would trigger fresh momentum and potentially unlock a path back toward the $3,000–$3,200 region. Despite the positive signs, risks remain. Ethereum is still down approximately 36% from its December 2024 high near $4,100. This gap highlights the work bulls still have to do to fully reverse the broader downtrend. The recent pause below resistance is a natural cooling-off phase, but if ETH fails to hold above support, bearish pressure could return quickly. Still, institutional confidence appears to be growing. According to data shared by top analyst Ali Martinez, smart money has accumulated over 450,000 ETH in the past month. This surge in whale accumulation suggests a longer-term bullish outlook, as large holders typically buy during moments of market consolidation to position for future upside. If bulls succeed in defending $2,400 and break through the $2,800 ceiling, Ethereum could become the catalyst for a broader altcoin rally—possibly marking the beginning of a new altseason.

Ethereum (ETH) is currently trading around $2,493 after failing to sustain momentum above the $2,700 mark. On the 4-hour chart, we can observe a clear break in the steep uptrend that started in early May. After an explosive surge from below $2,000, ETH rallied aggressively, but is now entering a corrective phase marked by lower highs and increasing selling pressure. The price is approaching the $2,480–$2,460 region, which could serve as short-term support. If that zone breaks, the next confluence of interest lies near $2,300. Volume has slightly declined during this retracement, suggesting that sellers are cautious rather than dominant. However, failure to hold above $2,400 could shift sentiment and invite deeper pullbacks. The 200-period EMA and SMA on the 4-hour chart sit well below the current price, at $2,084 and $1,936 respectively, indicating that ETH is still in bullish territory from a trend perspective. These moving averages could serve as dynamic support if the correction intensifies. Overall, Ethereum remains in a strong uptrend, but the current pullback suggests a consolidation phase is underway. Bulls need to defend key levels and break above $2,700 again to regain upside momentum and aim for the $2,800–$3,000 range.

As the debate about Ethereum (ETH) scaling on the L1 level becomes more heated, Ethereum engineers and researchers have proposed a protocol improvement that would allow the blockchain to parallelize transaction execution and block validation. EIP 7928, known as "Block-Level Access Lists," would enable Ethereum to include in the blockchain a complete list of all addresses and storage keys accessed during a block, along with their post-execution values. This proposal, authored by Ethereum veterans Toni Wahrstätter, Dankrad Feist, Francesco D`Amato, Jochem Brouwer, Ignacio Hagopian, Yoav Weiss, and Alex Forshtat, is expected to enable parallel disk reads and parallel transaction validation. This, in turn, is poised to increase execution efficiency and accelerate block validation, potentially unlocking major scaling gains for Ethereum L1. The proposal is part of Ethereum's ongoing efforts to improve its scalability and efficiency, ensuring that the network can handle increased transaction volumes and maintain its position as a leading smart contract platform.