First Implementation of the ‘Dencun’ Testnet on Ethereum Coming in January
Ethereum developers are gearing up for the upcoming Dencun update by intensifying the testing process. This update will introduce a new data storage capability called “proto-danksharding.” The developers have set a target date of January 17th to run Dencun on the Goerli test network. The update will enable proto-danksharding, which reduces fees for level 2 rollups and increases data space on the blockchain. Tim Beiko, protocol support lead at the Ethereum Foundation, stated that they can withdraw if there are significant problems or unexpected events. The developers have outlined a timeline for Dencun’s tests, with the goal of distributing the changes on the mainnet by the end of February.
All About the Dencun Update
The Dencun update combines two simultaneous updates for different levels of the Ethereum blockchain: Cancun for the execution level and Deneb for the consensus level. The update includes EIP 4844, or proto-danksharding, which expands data space on the blockchain to reduce fees for level 2 rollups. Initially, this update was postponed in favor of focusing on ETH withdrawals in staking. However, after further examination of EIP 4844’s technical details, it was included in the update. Dencun will also include other technical updates such as EIP 6780, 6475, and 1153.
Ethereum Price Struggles Below $2,250
The price of Ethereum is facing challenges as it tries to surpass $2,250. It has attempted to break through resistance barriers but has failed to consolidate above $2,250. Currently, Ethereum is in a consolidation phase above the 23.6% Fibonacci retracement level. It is trading just below $2,220 and the 100-hour simple moving average. On the upside, it faces resistance at $2,210 and $2,250 or $2,265. A breakthrough above $2,265 could lead to further gains. However, if it fails to break the resistance, a decline could occur with support levels at $2,170 and the trendline. Further losses could push the price towards $1,880.
Hot Take: Ethereum Prepares for Dencun Update with Testnet Implementation in January
Ethereum developers are making progress on the Dencun update by intensifying testing and setting a target date for the testnet implementation. This update will introduce proto-danksharding and is expected to reduce fees for level 2 rollups and increase data space on the blockchain. The developers have outlined a timeline for tests and aim to distribute the changes on the mainnet by the end of February. The price of Ethereum is currently facing challenges as it tries to surpass $2,250, with resistance levels at $2,210 and $2,250 or $2,265. A breakthrough could lead to further gains, while failure to break resistance may result in a decline.
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