**Ethereum Price Rally Takes a Pause After Exciting Week**
The Ethereum price rally slowed down on Thursday after a week filled with excitement among crypto investors. The main topic of discussion was the potential approval of Bitcoin spot exchange funds (ETFs), as the US Securities and Exchange Commission (SEC) showed signs of warming up to the idea. Ethereum, the second-largest cryptocurrency, followed Bitcoin’s lead and broke out of its longstanding downtrend. It reached above $1,800 for the first time since August, although it corrected to around $1,781 on Friday.
**Consolidation of Gains and Possibility of Another Breakout**
After gaining popularity among traders and investors during the bull run, Ethereum experienced a significant breakout above a falling wedge pattern. This breakout was accompanied by a substantial increase in trading volume, creating an ideal environment for a major rally. The Ethereum price held above the 38.2% Fibonacci retracement level, which indicates that bulls are relying on it to continue the uptrend. However, traders should exercise caution as the Relative Strength Index (RSI) suggests a possible pullback.
**The Upcoming Dencun Upgrade and Increased Scalability**
The Ethereum community is eagerly anticipating the release of the Dencun upgrade, which is expected to enhance the blockchain’s stability. According to Goldman Sachs, this upgrade will primarily increase data availability for layer-2 rollups through proto-danksharding. This will lead to reduced transaction costs for rollups and benefit end users. Layer 2 protocols are built on top of Ethereum and provide faster, cheaper, and more scalable blockchains. Rollups process transactions on these separate blockchains before lodging them onto the main Ethereum blockchain later. The Dencun upgrade will significantly improve Ethereum’s scalability and positively impact gas fees and network security.
**Hot Take: John’s Insights on Crypto Market Trends**
John, a seasoned crypto expert at CoinGape Media, is known for his accurate price predictions and in-depth analysis of the digital asset market. He has extensive experience in understanding on-chain data analytics, NFTs, DeFi, CeFi, and the metaverse landscape. Through his reporting, John aims to keep his audience informed and equipped to navigate the ever-changing crypto market. However, readers are advised to conduct their own market research before investing in cryptocurrencies.
[Original Article](https://coingape.com/ethereum-price-consolidates-gains-dencun-upgrade-scalability/)
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