 ▲ Vitalik Buterin/Source: X © |
As Ethereum faces resistance at the $2,000 level, Vitalik Buterin has drawn market attention by unveiling a “Bolt-On” upgrade plan that fundamentally restructures the Layer 1 network.
According to investment media outlet FXStreet on February 21 (local time), Ethereum (ETH) co-founder Vitalik Buterin recently pushed back against claims that the network should be shut down, proposing a “non-ugly Ethereum” upgrade grounded in cypherpunk principles that would replace the existing framework. The approach maintains the current main network while adding a bolt-on structure designed to significantly enhance censorship resistance, privacy, and decentralization.
Buterin presented a blueprint to implement the new system within five years, explaining that AI-based coding and verification technologies could accelerate development. He also referenced “The Merge” in 2022, emphasizing that Ethereum has already achieved a transformation comparable to changing a jet engine mid-flight. He suggested that four additional large-scale transitions—such as restructuring the state tree and overhauling the virtual machine—would also be possible.
The proposal emerged amid debate over the rollup-centric scaling strategy. The existing roadmap delegated high transaction volumes to Layer 2 (L2) solutions, but critics argue that L2 decentralization has progressed more slowly than expected, while the base layer has advanced more rapidly. Buterin is exploring ways to directly integrate zero-knowledge proof compatibility and a simplified consensus structure into Layer 1.
Price action remains under pressure. ETH is currently trading near $1,960, with $35.4 million in liquidations over the past 24 hours, including $18 million in short liquidations. On the daily chart, the 20-day Exponential Moving Average (EMA) at $2,123 is sloping downward, limiting upside momentum. Resistance levels are identified at $2,107 and $2,388, while support levels stand at $1,741 and $1,524.
Technical indicators also point to weakness. The Relative Strength Index (RSI) and the Stochastic oscillator remain below their neutral lines, suggesting continued bearish momentum. However, a daily close above the 20-day EMA could ease downward pressure and open the door for further gains toward $2,388 and $2,746. Conversely, a break below $1,404 could intensify additional downside risk.
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