In recent Ethereum news, Vitalik Buterin indicated that Q-day is nigh as the ghost of quantum computing continues to haunt the crypto industry.
The Ethereum co-founder recently warned that Quantum Day (Q Day) may occur as soon as 2028.
This is the hypothetical day that quantum computing becomes powerful enough to break public key encryption for digital currencies like Bitcoin and Ethereum.
Vitalik’s warning highlights potential risks to the crypto market and particularly to crypto holders. This is because quantum computers could potentially be used to break into private wallets.
While Quantum Day risks may be legitimate, the reality of the matter is that access to such computing power will be very centralized and not publicly available.
Nevertheless, this calls for developers to improve cryptocurrencies with quantum-proof upgrades. Buterin’s latest statement is making Ethereum news headlines and here’s what you need to know.
Vitalik Buterin Introduces Opt-in Privacy for Ethereum Wallets
Privacy coins have been receiving a lot of attention lately the big players have been taking note. This includes Vitalik Buterin who revealed the Kohaku update during DevCon.
Reports revealed that the update was a modular privacy framework that will facilitate opt-in privacy.
This essentially means that the Ethereum founder is looking to secure a slice of the hyped-up privacy pie in the crypto market.
The big question now is whether this move will encourage more ETH adoption and possibly have an impact on price.
The cryptocurrency has been experiencing a lengthy bearish episode characterized by heavy outflows.
Ethereum ETFs for example, have only had one day of positive flows this month. The cryptocurrency has so far experienced almost $1.5 billion worth of ETF outflows since the start of November.
Some analysts believe that Buterin’s prediction about Quantum Day may fuel more FUD and contribute to more sell pressure.
Ethereum Price Capitulation Could Push Price as Low as $2,300
Sell pressure has been the order of the day so far this month, breaking previously existing optimism about potential upside.
The cryptocurrency has already made another critical move after sliding below $3,000 on Monday and Tuesday. The latest Ethereum news failed to bring back excitement into the cryptocurrency.
This also highlighted capitulation risk which could lead to more downside below $3,000. ETH price exchanged hands at $3,091 at press time.
ETH was not yet oversold despite sliding below $3000 twice earlier this week. This could signal more room for downside, seeing that institutions have been selling even at recent lows.
Whale activity assessment disclosed almost $15 million worth of spot buys from OKX and Binance whales in the last 24 hours.
However, derivatives activity across top exchanges revealed overall short bets on the cryptocurrency.
Collective spot flows remained in the red by at least $37 million in the last 24 hours. In other words, ETH was still facing weak demand especially from whales and institutions despite its recently discounted price levels.
Weak demand previously gave way to capitulation hence such an outcome may be highly plausible this week.
This means the $3,000 support level may give way to more bearish activity in the absence of substantial demand.
ETH price may find the next support level near the $2,300 price level if it encounters more sell pressure.
On the other hand, a recovery from the current levels could potentially push it back above $4,000.