- The Dencun upgrade facilitated significant growth for various L2s.
- In the past 24 hours, ETH experienced bullish price movement.
Following the Dencun upgrade, Ethereum [ETH] underwent substantial transformations within its ecosystem. Consequently, ETH’s fees reached an all-time low, significantly influencing the token’s deflationary nature.
But will ETH’s price be affected?
Is Ethereum evolving?
IntoTheBlock recently shared a tweet detailing several key updates. After the Dencun upgrade, Ethereum Mainnet fees plummeted to an unprecedented low due to a spike in L2 transactions. EIP-4844 reduced L2 costs by a factor of 10, leading to historical activity levels.
This significantly benefited L2s, as their transaction counts and usage have surged recently. However, the narrative has more layers; with a reduction in fees being burned, ETH has shifted to an inflationary model, contrasting its recent deflationary trajectory.
Source: X
Typically, deflationary characteristics generate optimism as a reduced supply increases the potential for price growth.
However, given the current situation for ETH, AMBCrypto sought to explore its present condition more thoroughly.
What lies ahead for Ethereum?
According to CoinMarketCap, after a week of declining prices, ETH bulls reclaimed the market, boosting its value by over 2% in the last 24 hours.
As of now, ETH was priced at $2,476.41, boasting a market cap exceeding $298 billion.
Following the price increase, over 9 million Ethereum addresses were showing profits, which represented more than 50% of all ETH addresses.
Source: IntoTheBlock
Next, we analyzed the token’s on-chain data to assess how this change in characteristics might influence the reigning altcoin’s price over the next few days.
Analyzing CryptoQuant’s data indicated a decline in ETH’s exchange reserves. This trend suggests increasing buying pressure on the token, seen as a bullish indicator.
Additionally, our investigation uncovered several more bullish indicators. For instance, the total number of ETH transferred surged by 158.76% within the last 24 hours.
The count of active wallets engaging in transactions has also climbed by 19.01% compared to the previous day.
Source: CryptoQuant
Given the overall favorable metrics, AMBCrypto surveyed Ethereum’s daily chart for further insights into market indicators.
Read Ethereum’s [ETH] Price Forecast 2024–2025
Our analysis indicates that Ethereum is currently testing its 20-day simple moving average (SMA) resistance.
A successful breakout could lead ETH to reach $3.5k in the near term. Conversely, the MACD is showing a bearish tendency, which could signal a decline to $2.2k.
Source: TradingView
