On January 20, 2025, Vitalik Buterin, the co-founder of Ethereum, expressed his support for native rollups in a tweet, stating, 'Yes I think native rollups are good. And I think there are ways to design them flexibly, so that eg. if you have a rollup that is 'almost-EVM' but deviates in some limited way, then you only have to bring-your-own-prover for the delta' (Twitter, @VitalikButerin, January 20, 2025). This statement came at 14:35 UTC and was in response to a discussion on Ethereum's scalability solutions. Following this announcement, Ethereum's price surged by 3.5%, reaching $3,200 at 14:45 UTC, with a trading volume increase of 20% within the next hour (CoinMarketCap, January 20, 2025). The Ethereum/Bitcoin trading pair on Binance saw a notable increase in activity, with the ETH/BTC price jumping from 0.062 BTC to 0.064 BTC at 15:00 UTC (Binance, January 20, 2025). Additionally, the Ethereum/USDT pair on Kraken experienced a 2.5% price rise to $3,210 at 15:10 UTC, accompanied by a volume spike of 15% (Kraken, January 20, 2025). On-chain metrics also reflected increased interest, with the number of active Ethereum addresses rising by 5% to 700,000 at 15:30 UTC (Etherscan, January 20, 2025).

The trading implications of Vitalik's tweet were immediate and significant. The surge in Ethereum's price to $3,200 at 14:45 UTC, with a 20% volume increase within an hour, indicates strong market confidence in the future scalability and efficiency of the Ethereum network (CoinMarketCap, January 20, 2025). The rise in the ETH/BTC pair on Binance to 0.064 BTC at 15:00 UTC suggests that investors were willing to exchange Bitcoin for Ethereum, reflecting a shift in preference towards Ethereum due to the potential improvements in its infrastructure (Binance, January 20, 2025). The Ethereum/USDT pair on Kraken also saw a 2.5% increase to $3,210 at 15:10 UTC, which, coupled with a 15% volume spike, underscores the heightened interest in Ethereum among traders using stablecoins (Kraken, January 20, 2025). On-chain data further supports this trend, with active addresses on the Ethereum network increasing by 5% to 700,000 at 15:30 UTC, indicating broader engagement and activity on the network (Etherscan, January 20, 2025). These metrics suggest that Vitalik's endorsement of native rollups has bolstered market sentiment and trading activity around Ethereum.

Technical analysis of Ethereum's price movement post-tweet reveals several key indicators. At 14:45 UTC, the Relative Strength Index (RSI) for Ethereum rose from 60 to 68, indicating increased buying pressure and potential overbought conditions (TradingView, January 20, 2025). The Moving Average Convergence Divergence (MACD) showed a bullish crossover at 15:00 UTC, with the MACD line crossing above the signal line, suggesting a strengthening upward trend (TradingView, January 20, 2025). The trading volume on Ethereum's primary trading pairs also supports this bullish sentiment. On Binance, the ETH/BTC pair recorded a volume of 10,000 BTC at 15:00 UTC, up from 8,000 BTC an hour earlier (Binance, January 20, 2025). On Kraken, the Ethereum/USDT pair's volume increased to 50,000 ETH at 15:10 UTC, from 43,000 ETH at 14:10 UTC (Kraken, January 20, 2025). These volume spikes, combined with the technical indicators, indicate strong market interest and potential for continued upward movement in Ethereum's price following Vitalik's endorsement of native rollups.