Thursday, April 18, 2024

Ethereum Bucks Downturn, Surges Ahead of Dencun Upgrade.

Wednesday saw an increase in the price of Ethereum (ETH), while the prices of numerous other cryptocurrencies erased their recent gains in the wake of Tuesday’s decline in the price of Bitcoin. Despite widespread profit-taking by holders, ether continued its recent upward trend towards the psychological $4,000 mark.

On March 13, the Dencun upgrade—a significant technical advancement for the Ethereum mainnet—is expected to launch. For Layer 2 chains and rollups, the update represents a significant turning point.

Ethereum prepares for gains ahead of the update to Dencun.

The Ethereum blockchain underwent its most important upgrade since the merger, when proof-of-stake replaced proof-of-work as the consensus method. This upgrade is known as Dencun. The mainnet release of Dencun is scheduled for March 13 by the developers.

The “proto-danksharding” feature of the upgrade, which employs blobs to lessen the load on the underlying blockchain and cut expenses for Layer 2 chains and rollups that rely on the Ethereum chain, is what has made it popular. One of the main Ethereum Improvement Proposals included in the Dencun upgrade, EIP-4844, makes this feasible.

Now that the testnets for Sepolia and Holesky have concluded successfully, Dencun is prepared for deployment and seamless integration onto the Ethereum mainnet.

The Dencun upgrade, sometimes referred to as a hard fork, will occur when the blockchain of Ether reaches position 8626176. This is anticipated to happen on March 13 at 13:55 GMT.

The Dencun improvement could revolutionise Layer 2 chains.

Layer 2 chains are significantly affected by dencun. The development upgrade is brimming with EIPs that provide L2 protocols with the security of the Ethereum mainnet while processing transactions off-chain to improve scalability.

EIP-1153, EIP-4788, EIP-5656, EIP-6780, EIP-7044, EIP-7045, EIP-7514, and EIP-7516 are the main EIPs in the Dencun upgrade. The goal of these enhancement suggestions is to make it easier for Layer 2 protocol activities to grow.

The Ethereum mainnet is heavily used for security by current rollup technologies, including Arbitrum, zkSync, StarkWare, and Optimism; hence, these projects stand to gain from the upgrade. This is anticipated to encourage more adoption and increase the usefulness of these projects.

The price of Ethereum approaches the $4,000 mark.

The price of the cryptocurrency is rising on Wednesday towards its psychologically significant $4,000 target, following the all-time high of the price of Bitcoin on Tuesday. With a three-month correlation coefficient of 0.95, both coins exhibit strong correlations.

As of Wednesday, the value of staked Ether has increased to $118 billion, significantly reducing the amount of the altcoin in circulation and allowing the surge to continue. Despite steady profit-taking, which has totalled $1.969 billion since the start of March, according to data from Santiment, the altcoin has increased and faces no major obstacles on its way to $4,000.

The 23.6% Fibonacci resistance level at $3,432 on a daily candlestick close could refute Ethereum’s bullish argument. The price of ETH might plummet to $3,190, the 38.2% Fibonacci retracement, in the case of a collapse.

Cryptured Team
Cryptured Team
The writers team at Cryptured.com is composed of passionate and experienced journalists who cover the latest developments in the crypto and blockchain space. They aim to provide accurate, unbiased and easy-to-understand news and information for their readers, as well as insights and analysis from industry experts. The writers team is always on the lookout for new and exciting stories that can help the general public learn more about the potential and challenges of these technologies.
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