Ethereum, the second largest crypto asset by market capitalization surpassed the $4000 price level for the second time in over three months today.
The crypto token hit $4,012 in the early hours of Monday as it moves towards its three-year all-time of $4,787
Ethereum surpassed the $4000 price level for the second time this month after two full months of trading below the $4000 price level.
The crypto asset last hit $4000 on Dec 6 before dropping to $3986 the next day.
The crypto asset did not cross this price level throughout the November bull run even as Bitcoin smashed its all-time high.
Ethereum criticized for underperforming and for structural defects
Ethereum has faced serious criticism from its community and the crypto audience at large. Ethereum price has traded below its all-time high for three full years despite Bitcoin breaking several all-time highs.
- Many have predicted that Solana would eventually flip the crypto assets market capitalization as the blockchain grows unpopular with each passing day.
- Issues like structural challenges surrounding Layer 1 and Layer 2 solutions and poor UX have haunted the blockchain for years drawing criticism.
- Camila Russo, journalist at Defiant News in an X post highlighted some of the issues plaguing the Ethereum Blockchain and how it weighs down on its price.
“Disappointing to see leaders of the Ethereum community unwilling to acknowledge what’s wrong with the chain and blame underperformance on “people are dumb and don’t get it”
Ethereum has real problems right now and that’s what’s weighing on price.
Maybe those problems are getting worked on, are temporary, and will be solved down the line, but the risk that it doesn’t happen or happens too slowly to keep up with the competition is being priced in.
Some major problems for ETH price right now:
- L2s parasitic to L1 (value of activity happening in ETH ecosystem accrued mostly to L2s, not ETH)
- Bad UX, including double tx approvals, fragmentation across mainnet, and multiple L2s (driving users/activity to other chains)
“I think it takes some degree of arrogance to dismiss these concerns.” Camila stated
Prolific Ethereum community Eric.Eth reacted to some of these criticisms Ethereum has faced over the months admitting the blockchain has some flaws.
However, he reminded the community that Ethereum remains the only blockchain adhering to the core value of true decentralization. He believes Ethereum is a multi-decade play and is still on the right path to emerging on top.
What to Know
- At the time of the report, Ethereum is exchanging hands for $3,918 surging by 0.9% in the last 24 hours and 22.5% on a one-month scale.
- The crypto asset is currently 18.9% down from its all-time high of $4,878