In recent days, a wave of speculation has surged across crypto communities following claims that Ethereum might revert to a Proof-of-Work (PoW) mining mechanism. While the rumors stem from misinterpretations of Vitalik Buterin’s latest technical proposals, the market reaction has been real—multiple Ethereum whales have begun aggressively accumulating ETH, pulling large sums from centralized exchanges into private wallets. On Friday, April 12, Ethereum rose to $3,511, tracking Bitcoin’s broader rebound.
This article explores the truth behind the PoW rumors, analyzes whale movements on-chain, and examines what’s really driving Ethereum’s current momentum—and what could shape its near-term future.
The Truth Behind the "Ethereum PoW Return" Rumors
Rumors of Ethereum reverting to PoW gained traction after comments made by co-founder Vitalik Buterin during the Hong Kong Web3 Carnival. He highlighted a critical bottleneck in Ethereum’s current Proof-of-Stake (PoS) system: the time required to generate zero-knowledge proofs (ZK-SNARKs).
Currently, ZK-SNARK generation takes around 20 minutes on Ethereum’s consensus and execution layers, despite block times being just 12–13 seconds. This delay hinders real-time validation and full ZK-EVM equivalence—key components for scaling and privacy.
Buterin proposed a solution: parallelization and aggregation trees, which would use specialized hardware (like ASICs) to accelerate ZK-proof generation. He also suggested using more efficient SNARK algorithms and hash functions to improve speed.
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However, this does not mean Ethereum is returning to PoW.
The distinction is crucial:
- In traditional PoW (like pre-Merge Ethereum), miners competed to solve meaningless cryptographic puzzles for block rewards.
- Buterin’s idea involves using hardware to perform useful computation—generating compact, verifiable proofs that enhance scalability and privacy without reintroducing energy-intensive mining.
Some confusion arose because projects like Aleo already use the term “mining” to describe ZK-proof generation via GPUs or ASICs. In Aleo’s model, these proofs are validated quickly by PoS nodes, enabling faster and more private transactions.
But unlike PoW, there’s no mention yet of rewarding ZK-proof generators with ETH. This remains a theoretical research path—not an imminent network upgrade.
As BlockTempo clarified, claims that Ethereum is reverting to PoW due to stalled spot ETF approvals are technically unfounded. Even if ZK-proof generation were incentivized in the future, it wouldn’t address centralization concerns in PoS staking or significantly impact regulatory decisions.
Whale Activity Signals Strong Confidence in ETH
Despite the noise around consensus mechanisms, on-chain data reveals a clear trend: major investors are accumulating Ethereum.
According to Spot On Chain, whale address 0x347 deposited 9,000 ETH (~$32 million) to Binance at $3,560 per ETH—a partial profit-taking move. Still, the wallet holds 29,738 ETH worth over $106 million, with unrealized gains of ~$68.5 million.
Meanwhile, other whales are doing the opposite.
Data from LookonChain shows:
- Whale
0x4359bought 10,309 ETH (~$35.8M) at market lows on Wednesday and withdrew 3,092 ETH from Binance. - Over three days, this address pulled 24,044 ETH (~$86.5M) from exchanges.
- Another whale,
0xACc7, withdrew 22,251 ETH (~$80M) on Thursday alone. - Their total exchange outflows reached 33,925 ETH (~$122M) in just 72 hours.
These moves suggest growing confidence in Ethereum’s long-term value—especially amid rising interest in restaking protocols like EigenLayer, which launched its mainnet recently.
Indeed, LookonChain confirmed that some institutions are redirecting ETH from Binance into DeFi platforms such as Pendle and Bedrock, indicating active participation in yield-generating strategies.
Why Are Whales Moving Now?
Several factors may be influencing whale behavior:
- Bitcoin Halving (April 20): With less than two weeks before the next Bitcoin halving, historical patterns suggest altcoins—including Ethereum—could enter a bullish phase soon after.
- Regulatory Pressure: The SEC issued a Wells Notice to Uniswap Labs on April 10, alleging it operates as an unregistered securities exchange. Given that ~80% of DeFi runs on Ethereum, any regulatory crackdown could impact ETH sentiment.
- Spot ETH ETF Uncertainty: While Bitcoin ETFs have gained approval, Ethereum ETFs remain pending. Some speculate this delay fuels fears of increased centralization under PoS—though technically unfounded.
Still, whales appear to be betting on resilience. Their capital flight from exchanges reduces liquid supply—a historically bullish signal.
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Ethereum Technical Outlook: Consolidation Ahead?
After peaking at $4,094 on March 11, Ethereum entered a corrective phase. FXStreet analyst Michael Ebiekutan notes that price action since then has formed a sideways consolidation pattern.
Key levels to watch:
- Resistance: $3,730 (recent pivot), then $4,094 (March high)
- Support: $3,210 (April 5 low), then $3,056 (March 20 low)
A break below support could trigger bearish momentum. However, sustained consolidation suggests traders are waiting for macro catalysts—most notably the Bitcoin halving and potential clarity on ETH ETFs.
Ethereum continues to follow Bitcoin’s lead closely. Since年初, their price correlation has remained strong—a reminder that BTC still drives overall market sentiment.
Bitcoin Technical View: Eyes on $73,390
CMTrade analysis shows Bitcoin holding above key moving averages:
- Trading above both 20-day ($70,207) and 50-day ($70,399) MA
- RSI above neutral 50 level
- MACD below zero but trending upward
The pivot point sits at $69,050**. A sustained move above this could push BTC toward **$73,390.
On the downside, failure to hold $69K may lead to retests at $67,460 and $66,510.
With the halving imminent, volatility is expected to rise—potentially pulling Ethereum along for the ride.
Frequently Asked Questions
Is Ethereum really going back to PoW?
No. Vitalik Buterin discussed accelerating ZK-proof generation via hardware—not reintroducing PoW mining. The proposal enhances scalability, not consensus mechanics.
Why are whales withdrawing ETH from exchanges?
Large withdrawals reduce circulating supply and often signal long-term holding confidence. Many are likely preparing for restaking or yield opportunities in DeFi.
Does ZK-proof mining make Ethereum more decentralized?
Not necessarily. Even if ZK-proof generation were rewarded, it wouldn’t resolve concerns about staking centralization unless paired with broader governance reforms.
Will SEC actions affect Ethereum’s price?
Yes. Regulatory uncertainty—especially around Uniswap and potential classification of ETH as a security—can create short-term volatility. However, strong on-chain activity may offset negative sentiment.
What happens to Lido or Pendle if ETH shifts consensus?
There are no plans to change Ethereum’s consensus. Current staking derivatives like LDO or PENDLE remain safe—but investors should always monitor protocol risk.
How does the Bitcoin halving impact Ethereum?
Historically, altcoins rally months after halvings due to renewed capital inflows. If BTC surges post-halving, ETH is likely to follow.
Final Thoughts
While sensational headlines claim Ethereum is reverting to PoW, the reality is far more nuanced. Buterin’s vision focuses on improving efficiency—not rolling back upgrades. Meanwhile, whale accumulation speaks louder than rumors: smart money is positioning for growth.
With the Bitcoin halving around the corner and DeFi innovation accelerating through restaking and ZK-scaling, Ethereum remains at the heart of crypto’s evolution.
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Core Keywords: Ethereum, Proof-of-Stake (PoS), ZK-SNARKs, whale accumulation, Bitcoin halving, DeFi restaking, consensus mechanism