Ethereum (ETH) Faces Double Pressure: Technical and Institutional

Updated

November 6, 2025

Summarize

ChatGPT Perplexity

Summarize

ChatGPT Perplexity

Gambar Ethereum (ETH) Faces Double Pressure: Technical and Institutional

Jakarta, Pintu News – Ethereum , one of the leading cryptocurrencies, has recently experienced significant pressure from both technical and institutional sides. Vitalik Buterin, the founder of Ethereum, acknowledged the existence of serious scalability issues that could affect the network’s performance. On the other hand, the massive withdrawal of funds from ETFs based on Ethereum indicates a decline in confidence from institutional investors.

Technical issues that cannot be ignored

Modexp seems to be by far the worst offender in terms of ZK-EVM prover-unfriendliness; up to 50x worse than average blocks.

We really should do an EIP to replace the precompile with computationally equivalent EVM code (which would cost more gas)

Very few apps need modexp (it's… pic.twitter.com/ppWxzMcs8E
— vitalik.eth (@VitalikButerin) November 3, 2025

Vitalik Buterin recently revealed that modexp, a key component in ZK-EVM proving, operates with very low efficiency. According to him, modexp can be “50 times worse than the average block,” indicating a major bottleneck in network scalability. This is a serious problem because it could hamper Ethereum’s ability to process transactions quickly and efficiently.

Moreover, these issues are not only disruptive to network users, but also reduce Ethereum’s appeal as the platform of choice for decentralized applications. If not addressed soon, this could worsen Ethereum’s position in the highly competitive cryptocurrency market.

Also Read: Will Bitcoin (BTC) Experience a Sharp Drop Before Surging Again? Here’s the Analysis!

Institutional Risk Increases

As the original inventor of the modexp precompile I bow my head in shame 😢

But modexp really does hold Ethereum back so much. Both because of inefficiency, and because its complexity has exposed our ecosystem to huge amounts of consensus failure risk.

We could do heroic…
— vitalik.eth (@VitalikButerin) November 3, 2025

In addition to technical issues, Ethereum has also faced massive withdrawals from Ethereum-based ETFs. In one day alone, the Ethereum ETF saw outflows of $135.7 million, with BlackRock alone withdrawing $81.7 million. This suggests that institutional investors are starting to reduce their exposure to Ethereum, which could be an indicator of a lack of confidence in the currency’s long-term prospects.

These fund withdrawals not only affect Ethereum’s price in the market, but also raise questions about its long-term stability and sustainability as an investment asset. Losing the support of institutional investors could exacerbate price volatility and reduce liquidity in the market.

Ethereum Price Drop Potential

Makes sense. The opportunity cost of optimizing obscure opcodes is huge compared to improving core scalability layers.
— Lin Yao Xuan (@PuppiesYaoXuan8) November 3, 2025

Given this technical and institutional pressure, the price of Ethereum experienced a sharp decline, trading near $3,480 after a two-day price drop that erased most of last week’s gains. If this situation continues, it is possible that Ethereum will test lower price levels in the range of $3,300 to $3,350.

$ETH ETF outflow of $135,700,000 🔴 yesterday.

BlackRock sold $81,700,000 in Ethereum. pic.twitter.com/wFDSIgcv1d
— Ted (@TedPillows) November 4, 2025

This decline reflects not only the market’s response to Ethereum’s internal problems, but also a potential change in investor sentiment. If demand doesn’t recover soon, Ethereum may face further challenges in maintaining its value and trust in the eyes of investors.

Conclusion

The current difficulties faced by Ethereum show how complex the cryptocurrency ecosystem is. Technical challenges and declining institutional support are serious issues that need to be addressed with effective strategies. For the future of Ethereum, it is imperative that developers and the community work together to address these issues and restore investor confidence.

Also Read: Dash price soars, hitting $100 after almost 4 years!

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