Ethereum price prediction threatens a major tailspin after the successful mainnet launch of the Dencun Upgrade. The second-largest cryptocurrency briefly climbed to $4,087, testing its recent highs ($4,087) on Wednesday before sliding below the previous day’s open of $4,008.
Trading at $3,955 on Wednesday, ETH price has sustained a 2.5% drop in the last 24 hours. Its trading volume is down 20% in the same period, hinting at declining interest among traders.
With a market cap of $477 billion, Ethereum comfortably sits in the second position below Bitcoin’s $1.4 trillion cap.
Ethereum Price Prediction: What’s Next After Dencun Upgrade
Ethereum finalized the Dencun upgrade on the mainnet following three successful testnet launches. The landmark upgrade goes beyond introducing new features, it stands out for reducing fees on layer 2 protocols like Arbitrum — and is expected to spur growth.
As reported, “blobs” another key feature of the upgrade, brings to life a new locale to store data on the blockchain. This special space is isolated from standard transactions, attracting lower costs.
The Dencun upgrade, is the biggest protocol improvement in a year, with Ethereum expected to significantly change the scaling landscape where layer 2 protocols will benefit the most.
Layer 2 networks are preparing to incorporate “blobs” in their operations — a move likely to spark a pricing war. Arbitrum announced on X that it was ready to jump on the new data storage space in less than 24 hours.
The blobs have arrived on Ethereum! 🐡
The Dencun upgrade has successfully launched on Ethereum mainnet making it one of the biggest upgrades to support Layer 2’s in scaling Ethereum.
Now with the Ethereum mainnet upgrade complete, we expect the ArbOS Atlas upgrade to be…
— Arbitrum (💙,🧡) (@arbitrum) March 13, 2024
Contrary to expectations, the Dencun upgrade was not a significant market mover. If anything, sell-side pressure quickly erased the move to the recent highs around $4,093.
Based on the four-hour chart, Ethereum price has flipped below the important $4,000 level as well as the 20-day Exponential Moving Average (EMA).
A neutral and downward-slopping Relative Strength Index (RSI) backs the correction as ETH searches for fresh liquidity.
Several four-hour candle closes below $4,000 might accelerate the pullback. With the next major support at the 50-day EMA, investors should prepare for instability below $3,900.
Ethereum price prediction chart | Tradingview
For investors looking to capitalize on the retracement to maximize returns in the bull market, there is no need to fret as Ethereum price will stay bullish as long as it holds above the Ichimoku cloud levels.
The black line on the chart backs the uptrend as long as it is respected as support. In that case, a carefully executed dollar-cost average strategy would give traders many opportunities to buy the dip thus eventually contributing to new momentum above $4,000.
A good place to start buying ETH is the short-term support at $3,950. However, if the decline continues below $3,900, the 50-day EMA (the line in red on the chart) might ignite a new bullish fire toward all-time highs.
Ethereum might run into considerable congestion in the range between $3,963 and $4,083. About 1.64 million wallets bought ETH at an average cost of $4,027, implying that they may want to sell at their respective breakeven levels, damping the uptrend.
Ethereum IOMAP model | IntoTheBlock
The IOMAP model developed by IntoTheBlock points to robust support between $3,605 and $3,725. With approximately 835k addresses buying 4.11 million Ether in the range at an average price of $3,679, traders have a rough idea of how far down they can DCA if ETH price continues to fall.
Related Articles
- LUNC Price: Will Price Analysis Ever Reach $1 As 30% Bullish Comeback Excites Traders?
- Has Toncoin Price Hit Overbought After a 70% Weekly Surge?
- Binance Coin Price Forecast: Is $700 the Next BNB Milestone in Sight?
