The Ethereum Dencun network upgrade is set to be activated on the Goerli testnet on January 17. This upgrade is significant for the Ethereum chain, marking one of the most crucial developments since the Merge. The Dencun upgrade is known for the introduction of data blobs through the EIP-4844 or the protodanksharding upgrade.
Ethereum Improvement Proposals (EIPs) are responsible for implementing upgrades on the existing chain. EIP-4844 is expected to lower the Layer 2 transaction fees by introducing “data blobs”. These blobs are large pieces of data that can be attached to Ethereum blocks and Rollups, a type of Layer 2 scaling solution. By using blobs to store transaction data, space on the base chain can be freed up, allowing rollups to process at a lower transaction cost.
Tim Beiko, a developer at the Ethereum Foundation, announced the activation of the Dencun upgrade testnet. The implementation of EIP-4844 in the Dencun upgrade will free up space on the Ethereum chain and enable rollups to process at a reduced transaction cost.
On the price front, Ethereum is currently in an uptrend. The price of Ethereum rallied past $2,600 on January 10, with the next psychologically important target being the $3,000 level. This rally is believed to be fueled by capital rotation from Bitcoin to Ethereum following the SEC’s approval of the Spot Bitcoin ETF.
Ethereum’s price is currently above its 50 and 200-day Exponential Moving Averages (EMAs) at $2,231 and $1,959 respectively. The second target for Ethereum in its uptrend is the 78.6% Fibonacci Retracement at $3,004 of Ethereum’s drop from its June ’22 peak to its April ’22 low. However, a daily candlestick close below the 50% Fibonacci Retracement level at $2,232 could invalidate the bullish thesis for Ether price.
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| Information | Details |
|---|---|
| Geography | Global |
| Countries | |
| Sentiment | positive |
| Relevance Score | 1 |
| People | Tim Beiko |
| Companies | Ethereum Foundation, FXStreet |
| Currencies | Ethereum, Bitcoin |
| Securities | None |
