- The Dencun upgrade aims to reduce costs to further grow L2s.
- ETH’s price action remained bullish, as did market sentiment.
The waiting for Ethereums [ETH] The much talked about Dencun upgrade is coming to an end as it will take place on March 13th.
The upgrade will bring several changes to the blockchain, which will be especially beneficial for the L2s.
Since the update is just around the corner, AMBCrypto planned to check how ETH was doing ahead of the launch.
Everything about Ethereum’s Dencun upgrade
The Dencun upgrade will be the next major update for Ethereum after the Shapella upgrade that was postponed in 2023.
For the uninitiated, the Dencun upgrade will perform two upgrades simultaneously on Ethereum’s consensus and execution layers. The primary focus of the upgrade is to dramatically reduce costs to support Layer-2 growth.
This is made possible because the developers will activate a new Ethereum Improvement Proposal (EIP) called proto-dankharding.
Ethereum costs are rising
As developers prepared to roll out the new upgrade, Ethereum’s network fees rose.
AMBCrypto’s analysis of Artemis’ facts revealed that ETH fees gained momentum and peaked on March 5. As a result, ETH’s earnings also increased on the same day.
A possible reason behind this increase could be the increase in the gas price of ETH, which amounted to 64.39 Gwei per year. Ygraphs.
Source: YCharts
Although things looked optimistic in terms of value captured, Ethereum’s network activity was down. This was evident from the decline in the daily active addresses graph since February 29.
Due to the decrease in the number of addresses, the number of daily transactions of ETH also decreased.
Source: Artemis
Nevertheless, Ethereum’s price action favored the bulls as its price rose more than 9% over the past seven days. At the time of writing, ETH was trading at $4,034.42 with a market cap of over $484 billion.
The king of altcoins also remained a buzzing topic of conversation in the market as social volume remained high.
Furthermore, weighted sentiment spiked, indicating that bullish sentiment around the token was dominant at the time of writing.
Source: Santiment
Read Ethereums [ETH] Price prediction 2024-25
Apart from that, the technical indicator MACD showed a bullish upper hand on the market. The Chaikin Money Flow (CMF) also recorded an uptick, indicating a further rally.
However, the price of ETH had reached the upper limit of the Bollinger Bands at the time of writing, indicating a price correction.
Source: TradingView