Ethereum (ETH) Price Today: Stablecoin Inflows Push Price 11%

Ethereum’s price action is capturing the attention of
investors. As the year 2025 begins, Ethereum has witnessed a remarkable surge
in stablecoin inflows. This comes as Ethereum co-founder Vitalik Buterin
advocates for defense strategies against AI risks,

The Ethereum network saw a stunning $1.11 billion
increase in stablecoins over just seven days, according to data by LookOnChain.
Second on the list is Solana with $202.13 million, while TON came in third
place with $202 million.

This boost in liquidity has translated into positive
price momentum in ETH. At the time of publication, the token traded at $3,689
after a 1.6% and 11% rise in the past day and week, respectively. Ether
currently trades at an important price resistance level.

In the past 7 days, stablecoins(USDT&USDC) on #Ethereum increased by $1.11B, and stablecoins(USDT&USDC) on #Solana increased by $202.13M.https://t.co/MmejJTKE7z pic.twitter.com/dvxReLDhiH

— Lookonchain (@lookonchain) January 6, 2025

Key Price Levels

According to TradingView data, to the upside, the price
could face resistance at $4,003. However, with a failure to sustain an upward
momentum, the nearest support level is at $3,444. Technical analysis supports
this bullish sentiment, as Ethereum’s price has remained resilient above key
moving averages, including the 50 and 200 moving averages.

If Ethereum can maintain this bullish sentiment and
overcome the $4K resistance, the next few months could be crucial in confirming
whether the digital asset will push to new highs.

Meanwhile, as artificial intelligence (AI) evolves, the
prospect of superintelligent systems capable of surpassing human control looms
large. Buterin, recognizing the potential dangers, recently outlined a strategy
that emphasizes decentralization and democratic safeguards to prevent AI from
spiraling into an existential threat.

In his latest blog post, Buterin called for a balanced
approach that accelerates defensive technologies while ensuring transparency
and accountability through regulation.

Buterin’s post delves into the dual challenge of
rapidly advancing technology while mitigating its risks. He highlights the
urgency of preparing for a future where AI might become superintelligent in as
little as five years.

Ethereum Co-Founder’s Proposal about AI

His proposal includes building technology that
safeguards humanity without assuming that “the good guys” will always
be in control. A central component of Buterin’s defense strategy is the idea of
“decentralized and democratic differential defensive acceleration,”
or d/acc.

This approach focuses on empowering individuals rather
than centralized authorities to control vital resources, ensuring that AI
development doesn’t fall under the sway of governments or corporations with
potentially harmful agendas.

d/acc: one year laterhttps://t.co/pM3eVtJ1BU

— vitalik.eth (@VitalikButerin) January 5, 2025

While he acknowledges challenges in regulating
open-source systems or military applications, Buterin maintains that
accountability is a necessary mechanism to ensure responsible AI development.

A more radical proposal from Buterin suggests a
“global soft pause” on AI development, specifically targeting
industrial-scale computing hardware used to train superintelligent models.

This article was written by Jared Kirui at www.financemagnates.com.
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