- Ethereum faces critical crossroads as Buterin proposes RISC-V upgrade to modernize the EVM and tackle growing performance issues.
- Falling base layer fees and user migration to layer-2s raise sustainability concerns as Ether price tumbles below key support zones.
- Despite bearish pressure, TD Sequential buy signal and support indicators hint at a potential ETH price rebound from $1,580 level.
Ethereum may be preparing for a dramatic turnaround following a fresh proposal from co-founder Vitalik Buterin. On April 20, Buterin outlined a bold upgrade plan that could redefine Ethereum’s execution layer. The proposed shift to RISC-V architecture aims to modernize the Ethereum Virtual Machine (EVM), eliminating inefficiencies and improving zero-knowledge performance. This major pivot arrives as Ethereum battles growing concerns over developer friction, declining network fees, and rising competition from high-performance chains like Solana and Sui.
Besides addressing technical limitations, Buterin emphasized the need for stable data availability sampling and competitive block production. These factors are crucial for long-term scalability. Ethereum has struggled with throughput, driving some users and developers toward faster, cheaper alternatives. Additionally, base layer revenue has suffered. In early April 2025, average network fees hit $0.16, their lowest point since 2020. Layer-2 networks have helped reduce costs but have also cannibalized the mainnet’s income, worsening Ether’s price performance.
Fee Drop Sparks Market Anxiety
Ethereum’s declining fee revenue reflects waning user activity on its base layer. According to Santiment’s Brian Quinlivan, many users now favor smart contracts or layer-2 solutions. Consequently, blob fees from layer-2 networks dropped to just 3.18 ETH during the week of March 30. At the time, that equated to around $5,000 in revenue — a striking drop from previous periods.
Investors fear that Ethereum’s base layer may become financially unsustainable if this trend continues. As a result, bearish pressure intensified. ETH prices fell from $2,800 in February to around $1,580 by mid-April. Analysts warn that continued erosion of investor confidence could push Ether to $1,100.
Technical Indicators Show Hope
However, some technical signals suggest a possible reversal. Market analyst Ali noted a TD Sequential buy signal on Ethereum’s weekly chart. The indicator appeared after weeks of heavy selling. ETH formed smaller candles in April, signaling reduced bearish momentum. Notably, the asset found tentative support near the $1,580 level.
Moreover, a green “A13” support indicator in early March suggests potential strength at these price zones. If the buy signal holds, Ethereum may reclaim key resistance levels. Still, market participants remain cautious as Ethereum undergoes one of its most critical turning points yet.
