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Crypto News: Ethereum (ETH), the second-largest cryptocurrency by market capitalization, has seen a slight increase in its price today, reaching US$2,450. This represents a 1.19% gain. The current price of ETH is still below its all-time high of US$4,878.26, which was achieved on November 10, 2021. Since reaching its peak, the Ethereum price has dropped by about 53.02%. However, it is above its 50-day and 200-day moving averages, indicating a positive trend in the long term. The current market cap of ETH is US$295.2 billion, making it the second most valuable crypto asset after Bitcoin.
One of the factors that may have contributed to the recent price surge of ETH is the anticipation of the Dencun upgrade, which is expected to be completed in the first quarter of 2024. The Dencun upgrade is a major hard fork that will introduce several improvements to the Ethereum network, such as proto-dank sharding, temporary data storage, memory copy instruction, and more.
Proto-danksharding is a feature that will enhance the scalability and efficiency of layer-2 solutions on Ethereum, by creating a new space for data storage called blobs. Blobs will allow layer-2 chains to access more data from the Ethereum network, reducing the cost and latency of transactions.
Temporary data storage is a feature that will allow smart contracts to use new opcodes to store intermediate data during the execution of a transaction and clear it after the transaction is completed. This will reduce the permanent storage overheads and gas fees for smart contracts.
Memory copy instruction is a feature that will optimize the memory management of the Ethereum virtual machine (EVM), which is the runtime environment for smart contracts. This will make the processing of smart contracts more efficient and faster.
The Dencun upgrade is expected to bring significant benefits to the Ethereum ecosystem, as it will improve the performance, security, and usability of the network. The upgrade will also pave the way for future developments, such as sharding and proof-of-stake, which are part of Ethereum 2.0, the long-term vision of the platform.
As the Dencun upgrade approaches, many investors and developers are optimistic about the future of Ethereum and its potential to become a global platform for decentralized applications. Ethereum is already the most popular blockchain for building and deploying dapps, with over 3,000 active projects and over 1.5 million users as of January 2024.
With the Dencun upgrade, Ethereum may further solidify its position as the leading smart contract platform and attract more innovation and adoption in the crypto space.
Ethereum has been trading in a bullish channel since the start of the year, forming higher highs and higher lows. The price recently bounced off the lower boundary of the channel, which coincided with the 50-day moving average and broke above the US$2,400 resistance level.
The price is now facing a minor hurdle near the US$2,500 level, which is also the upper boundary of the channel. A successful break above this level could open the doors for more gains, possibly towards the US$2,600 and US$2,700 levels.
On the downside, the price will likely find support near the US$2,400 and US$2,350 levels. The 50-day moving average is also a key support zone, currently at US$2,320. If the price fails to stay above the channel and the 50-day moving average, it could start a major correction, possibly towards the US$2,200 and US$2,100 levels.
The RSI indicator on the daily chart is above the 50 level, indicating a bullish momentum. The MACD indicator is also positive, showing strong buying pressure. However, both indicators show signs of divergence, suggesting a possible reversal or consolidation in the near term.
Overall, Ethereum is in a strong uptrend, but it may face some resistance near the US$2,500 level. A clear break above this level could trigger a new rally, while a break below the channel and the 50-day moving average could signal a bearish scenario.
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