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Ethereum’s Dencun Upgrade Set to Launch March 13, as ETH Price Pushes Above $3,400

By Solomon Victor

Ethereum’s upgrade, slated for March 13, promises substantial improvements in efficiency and scalability, primarily through the implementation of EIP-4844, known as protodanksharding.

The Dencun Upgrade

The Dencun upgrade, now successfully activated on all testnets, brings crucial enhancements to Ethereum’s network. A standout feature is EIP-4844, introducing ephemeral data blobs, akin to adding extra lanes to a busy highway. These data blobs are set to alleviate congestion on the Ethereum network, making transactions smoother, more cost-effective, and faster for users.

In essence, Ethereum’s move to integrate ephemeral data blobs aligns with its broader goal of creating a more accessible, sustainable, and user-friendly blockchain ecosystem. This strategic step not only enhances the current network’s performance but also lays the foundation for future upgrades, marking a significant milestone in Ethereum’s scalability roadmap.

SEC and Ethereum ETF

In a parallel development, multiple issuers are vying for a spot in the Ethereum exchange traded fund (ETF) space following the successful launch of spot BTC products. However, the journey for Ethereum ETFs faces hurdles with the U. S.Securities and Exchange Commission (SEC) delays and commissioner comments signaling a challenging road ahead.

The U.S. SEC and spot Ethereum ETF applicants are expected to meet next month to discuss bids for Ether-based investment vehicles. Despite the approval of spot Bitcoin ETFs, the SEC’s historical concerns about market manipulation linger, posing potential obstacles for Ethereum ETF approval.

The recent approval of spot BTC ETFs, after over a decade of rejections, marked a turning point in legitimizing mass crypto adoption and investment in the U.S. This decision followed a Grayscale lawsuit against the SEC, highlighting the evolving landscape of cryptocurrency regulation.

Coinbase Advocates for Grayscale’s Ethereum ETF Approval

Coinbase, a prominent player in the crypto space, has thrown its weight behind Grayscale’s spot Ethereum ETF. Coinbase’s chief lawyer, Paul Grewal, emphasized the necessity of approving Grayscale’s application, presenting a comprehensive “legal, technical, and economic justification” to the SEC.

Grewal pointed out Ethereum’s robust governance under Proof of Stake, highlighting its characteristics across ownership concentration, consensus, liquidity, and governance. Coinbase’s advocacy for regulatory approval reflects the company’s commitment to supporting innovation and fostering a transparent, secure, and inclusive financial ecosystem.

See also:

Bitcoin faces correction after spot ETF surge.

Vitalik Buterin’s Caution on Layer 2 Scaling Solutions

Meanwhile, Ethereum co-founder Vitalik Buterin has raised concerns about potential risks associated with Ethereum’s Layer 2 (L2) scaling solutions. Despite the surge in interest in L2 technologies promising improved scalability and reduced transaction fees, Buterin warns of significant risks of permanent financial losses due to inherent vulnerabilities.

Buterin emphasizes the need for stronger security measures in L2 solutions, advocating for the integration of features standard in L1 solutions. He draws a critical distinction between potential failures at L1 and L2 levels, highlighting the graver risks and irreversible losses associated with L2 flaws.

ETH Price Update

Shifting our focus to Ethereum’s current market standing, the price of ETH stands at $3,420 today, reflecting a commendable 17% increase in the past 7 days, according to data from CoinGecko

The coin faces support at $3,000, with resistance at the $3,500 level.

Examining the weekly timeframe, the RSI value is at 88.6, indicating strong momentum. While the price surge is notable, it’s essential to approach market dynamics with a balanced perspective, considering both support and resistance levels.

ETH Price Surges Amid Optimism

As Ethereum’s Dencun upgrade approaches, the market has responded positively. ETH experienced a bullish week, reaching $3,400, a level unseen in nearly two years. 

Market participants express optimism about the potential impact of the changes on the network’s overall functionality and efficiency.

Read more: 

The Ethereum Merge: What the crypto asset buyer should know

Credit: Solomon Victor is a Technical Analyst who is also knowledgeable about various aspects of blockchain and cryptocurrency.