Ethereum Updates Today: Institutional Interest in Ethereum Rises Despite Negative Technical Indicators

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Ethereum Updates Today: Institutional Interest in Ethereum Rises Despite Negative Technical Indicators

Bitget-RWA2025/11/24 17:10

By:Bitget-RWA

- Ethereum faces conflicting short-term volatility and long-term institutional adoption growth, with $7.4B real-world assets tokenized and major banks expanding Ethereum-based frameworks. - Upcoming Dencun upgrade (2026) aims to boost scalability via EIP-4844, but governance risks persist as 10.4% of ETH is controlled by nine firms, warns co-founder Vitalik Buterin. - Bearish technical indicators show ETH below key moving averages, with $2,850 support level critical; quantum computing threats could break E

Recent shifts in Ethereum's market have ignited discussions about its future, as short-term price swings seem at odds with its underlying strengths. Some experts point to robust fundamentals, such as growing institutional involvement and planned protocol enhancements, while others warn that broader economic headwinds and governance issues may impede progress. The network's broadening formation—often seen as a sign of consolidation—has yet to be validated by key on-chain metrics, leaving its near-term path uncertain

as highlighted in new research

Ethereum is encountering obstacles as market liquidity contracts and leveraged trades are unwound. Open interest in ETH futures has dropped 7% over the past week to $6.7 billion, representing the largest weekly decline since July, while

funding rates have returned to typical levels after spiking

in early November. At the same time,

Ethereum

spot ETF inflows have decreased to under $10 million per day, a steep fall from $65 million seen in early October, signaling a more cautious approach from institutions.

Grayscale's ETHE discount narrowing to 5.2%

points to steadier investor interest, though not yet a strong rebound.

Technical analysis points to a bearish short-term trend. ETH/USD is trading below its 50-, 100-, and 200-day exponential moving averages, with

the Relative Strength Index at 26

—a reading that generally indicates oversold territory—and the MACD histogram showing increasing negative momentum. Should the price fall below the $2,850 support, Ethereum could slide toward $2,300,

based on recent projections

Despite these hurdles, Ethereum's presence among institutions is growing. Over $7.4 billion in real-world assets (RWAs) have been tokenized on the network, marking a 27% rise over the last quarter, and major financial players like JPMorgan, BlackRock, and HSBC are expanding their use of Ethereum-based frameworks for tokenized assets and settlement experiments

as recent studies indicate

. BitMine Immersion, which holds the largest Ethereum treasury, recently revealed it possesses 3.63 million ETH, reflecting strong corporate trust in the asset.

The Dencun upgrade, scheduled for early 2026, is widely regarded as a pivotal development. EIP-4844, also known as "proto-danksharding," is designed to lower transaction fees and boost scalability for layer-2 networks,

which could reinvigorate decentralized finance

and business applications. Vitalik Buterin, Ethereum's co-founder, has

stressed the significance of this upgrade

for keeping the network ahead as institutional participation grows.

Buterin has also raised concerns about governance risks and new challenges.

Referring to the FTX collapse

, he pointed out the dangers of centralized control, contrasting it with Ethereum's community-led approach. Since the FTX fallout, decentralized exchanges (DEXs) like Hyperliquid have gained popularity,

indicating a move toward trustless platforms

. However, Buterin cautioned that with nine institutions now holding 10.4% of ETH,

development priorities could be skewed

, potentially sidelining open-source contributors.

Quantum computing is another looming threat. Buterin mentioned that advances in quantum technology could compromise Ethereum's cryptographic security by 2028,

advocating for proactive strategies like layered ossification

to allow different protocol elements to adapt at their own pace. This view is echoed by industry experts such as Nic Carter and Scott Aaronson, who have also stressed the urgency of quantum-resistant solutions by the mid-2030s

as outlined in recent reports

Ethereum's lagging performance compared to

Bitcoin

has added to the complexity of its outlook.

The ETH/BTC ratio has dropped to 0.052

, its lowest in seven months, as Bitcoin's dominance climbs to 53.2%, driven by consistent ETF inflows and its reputation as a "safe haven" among digital assets. While Ethereum's long-term potential is still recognized, there is ongoing debate among investors about whether the current correction will lead to a new growth phase or a prolonged period of consolidation.

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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