ZKsync has recorded a sharp increase in price, gaining over 95% over the past 24 hours and more than doubling over the past week. The surge comes as the project’s latest upgrade, Atlas, draws attention across the Ethereum community – including a strong endorsement from Ethereum co-founder Vitalik Buterin.
Buterin publicly shared an article by ZKsync co-founder Alex Gluchowski titled “Ethereum Has Now Become a Major Capital Hub for ZKsync”, describing the team’s work as “underrated and valuable.” His comments have helped highlight the upgrade’s potential impact not just on ZKsync, but on Ethereum’s broader Layer-2 ecosystem.
Atlas Upgrade Turns Ethereum Into a Liquidity Hub
The Atlas upgrade introduces key performance improvements: over 15,000 transactions per second, one-second zero-knowledge proof finality, and nearly zero fees. However, ZKsync states that the main significance lies in structural changes to how Ethereum connects with Layer-2 chains.
Previously, each Layer-2 network needed to maintain separate liquidity pools. Atlas removes that requirement by enabling real-time capital movement directly through Ethereum, effectively turning Ethereum itself into a shared liquidity hub. This reduces fragmentation and cuts transaction settlement time between Layer-2s to around one second.
The architecture also speeds up L1-to-L2 transfers, finalizing faster than a single Ethereum block. According to ZKsync, this makes the network more suitable for use cases requiring fast and predictable settlement – including institutional finance and tokenized real-world assets.
The timing of the release and Buterin’s public support appear to have reinforced market confidence. Traders and investors are now positioning around the possibility of wider adoption or further protocol developments.
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Indicators Show Overbought Conditions
While the Atlas upgrade and Ethereum ecosystem support are driving interest, technical indicators suggest the market may be overheated in the short term.
The 14-period Relative Strength Index (RSI) is currently at 76, with the 7-period RSI even higher at 88 – both levels typically associated with overbought conditions. The price has also moved above the upper Bollinger Band (0.0544), which often indicates that the recent gains have been unusually rapid.
The Average Directional Index (ADX) is at 51, reflecting a strong trend. If momentum continues, the recent high at $0.0753 could act as resistance. In case of a pullback, the 23.6% Fibonacci retracement level at $0.0584 may serve as initial support.
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Outlook
ZKsync’s recent upgrade positions it as a core infrastructure component within Ethereum’s scaling roadmap. The focus on speed, interoperability, and shared liquidity suggests it may play a larger role in shaping how Ethereum handles both consumer and institutional traffic going forward.
However, following such a sharp rally, some degree of profit-taking may occur. Technical indicators such as high RSI levels and a clear break above the upper Bollinger Band point to short-term overextension.
