Ether eyes $3,000 as Vitalik Buterin proposes a new gas limit cap

Ether, the second-largest cryptocurrency by market cap, was one of the top performers in the top 10 over the last 24 hours.

The coin added 2.5% to its value, crossing the $2,550 mark in the process.

The rally is fueled by the broader crypto market embarking on a recovery following the losses recorded on Friday.

Ether could be rallying to $3k soon amid strong technical and fundamental indicators.

Buterin proposes a new gas limit cap for Ethereum

One of the biggest drivers for Ether’s upcoming rally could be the new proposal submitted by Ethereum co-founder Vitalik Buterin.

Buterin, along with researcher Toni Wahrstätter, proposed EIP-7983, which aims to establish a new gas limit for transactions on the network.

Buterin’s proposal introduces a 16.77 million (2^24) gas limit per transaction. The Ethereum blockchain currently has a per-block gas limit of approximately 36 million, with no limit per transaction. 

The proposal also added that the transactional gas limit is expected to improve the network’s resilience against certain denial-of-service (DoS) attacks, boost network stability, and offer more predictable transaction processing costs.

Furthermore, Buterin and Wahrstätter pointed out that leaving the Ethereum network without a per-transaction gas limit can bring risks such as inefficient load distribution, vulnerability to quadratic attacks, and challenges for zkVM compatibility and parallel execution.

The proposal’s approval by the Ethereum community could spark an ETH rally in the near term. 

Ethereum rebounds after testing key levels, eyes $3k

The ETH/USD 4-hour chart is bullish after the cryptocurrency retested key levels over the weekend.

Ether dropped to $2,461 on Friday to retest a key level, suggesting that the bulls are preparing for another leg up.

The technical indicators are bullish, with the relative strength index (RSI) of 58 suggesting a buying bias for Ether.

The 4-hour Moving Average Convergence Divergence (MACD) lines are also within the positive region, indicating a bullish trend.

Ether’s rising green histogram bars above its neutral level suggest bullish momentum and indicate an upward trend.

At press time, ETH is trading at $2,571. If the cryptocurrency continues with its rally, it could extend the rally toward its next daily resistance level at $2,724.

In the event of an extended rally, ETH could target the Fair Value Gap (FVG) at $3,042, its highest level since February 25. 

However, the bears have not completely relinquished control, as evidenced by the technical indicators.

If the bearish trend returns, Ether could face a correction that would see its price retest the daily support level at $2,461. 

Ether would have to be extremely bearish to retest the June 23 low of $2,123. Any drop below this support level could see ETH drop to the $1,800 psychological level. 

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