Whales Push Ethereum Toward $3K, But Will the ‘Complexity’ Be Too Much?

Ethereum has gradually risen over the course of the week, with the crypto’s moves raising hopes that better days are ahead. Still, things aren’t going smoothly, with an Ethereum developer pointing out something interesting about the growing complexity of the ecosystem.

$3000 beckons for ETH

On the price charts, the world’s largest altcoin appears to be on the cusp of crossing $3K. ETH, trading at $2,946 at the time of writing, may soon break the aforementioned resistance level, a level that has held up well despite a few unsustainable breaches.

According to analysts, sustaining a breach of the same will be the key to bringing ETH back to its former ATH.

Ethereum Price Promotion | Source: TradingView – Coin-Crypto

Coincidentally, whales were also active again this week as their trades began to increase across the board. Peaking at $8.8 billion in one day, it was the most significant spike in their activity since Feb. 24. In fact, this was around the time Russia began its invasion of Ukraine.

Ethereum whale transaction | Source: Intotheblock – Coin-Crypto

On the contrary, retail investors who own 58.21% of Ethereum’s 120 million ETH supply have been inactive as usual. Since the market crash, their contribution to the daily volume is only 10%.

Despite the price increase of 17.1% this week, the non-whale cohort remains fairly calm.

Ethereum total transaction volume | Source: Intotheblock – Coin-Crypto

A complicated matter

However, it’s worth pointing out that investor bullishness stems only from Ethereum’s use cases and the potential it claims to have with Proof of Stake (POS). This bullishness is also starting to affect the developers. One of them even believes that Ethereum’s complexity is close to breaking point and that touching it would float past the point of no return.

One of Ethereum’s team leaders and developer Péter Szilágyi recently touched on one of the most overlooked aspects of the system: complexity.

According to him, the complexity continues to increase with each Ethereum Improvement Protocol (EIP), such as EIP-1559, sharding and even the upcoming merger.

This increase in complexity can lead to cascading failure. And with the Merger approaching, he said this complexity will only increase. He explicitly stated that if the protocol doesn’t get leaner, Ethereum won’t make it to the Merge.

He added,

“Technical efforts have been made to reduce complexity (module split into Erigon, responsibility split into The Merge). However, no attempt has ever been made to reduce the complexity of the protocol. We are already past the point where someone has a complete picture of the system. This is bad.”

Szilágyi also stated that the cause of this problem is the “disconnect” between developers and the research team. The latter, according to Péter, only needs to come up with an idea, while the former has to incorporate the new idea among the countless ideas introduced earlier.

However, this is not something that can be solved in a jiffy.

“I can’t say what the solution is, but my 2c is to stop adding features and start scavenging even if it comes at the cost of things. There are fewer and fewer people who know and are willing to put together a broken network. And each change pushes more away. (sic)”

If this Ethereum were to break, the crypto space would likely suffer unprecedented damage.

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