Ethereum Upgrade Leads to Price Slump, but Recovery is Underway
The recent Dencun Ethereum upgrade has had a mixed impact on the price of ETH. After the upgrade went live, the price of Ethereum initially dropped by 3.2% from $4,076 to $3,949. However, since then, it has largely recovered and is currently above $4,000.
Each upgrade to the Ethereum blockchain is designed to bring improvements, such as lower fees and faster transactions. These enhancements ultimately increase the value of Ethereum in the long run.
โDencun will not only reduce fees to facilitate more trades and investments but also open the door for competitive peer-to-peer and commerce payments,โ said Beam Wallet CEO Andy Bromberg. He further explained that product maturation will make it easier for people to get into crypto and send payments, capturing momentum for real use cases.
Previous Ethereum Upgrades and Market Reactions
Letโs take a look at how previous Ethereum upgrades have affected the market:
The Merge: Transitioning to Proof of Stake
In September 2022, Ethereum underwent a major upgrade known as โThe Merge.โ This transitioned Ethereum from a Proof of Work to a Proof of Stake algorithm.
- Prior to The Merge, Ethereum was trading above $1,700 with a high of $1,779 on September 11.
- On September 15, the day of The Merge, Ethereum started trading at $1,635 and fell by 11% to $1,472.
- In the following days, Ethereum continued to decline and ended September at $1,329.
Grey Glacier Upgrade
The Grey Glacier upgrade took place in June 2022 and resulted in a slight decrease in Ethereumโs value.
- Before the upgrade, Ethereum was trading at $1,098.
- After the upgrade, it dropped by 3.8% to $1,057.
London Upgrade
The London upgrade occurred in August 2021 and had a positive impact on Ethereumโs price.
- Prior to the upgrade, Ethereum was trading at $2,724.
- On the day of the upgrade, it rose to $2,821.
- By August 7, it further increased by 11.7% to $3,151.
Ethereum Berlin Upgrade
In April 2021, Ethereum went through the Berlin upgrade.
- Before the upgrade, Ethereum was valued at $2,429.
- On the day of the upgrade, its price rose by 3.5% to $2,514.
The Impact of the Dencun Upgrade
Following the recent Dencun upgrade, Ethereum experienced a temporary slump in price. However, it quickly regained its footing and is currently on an upward trajectory.
Hot Take: Bull Markets Climb a Wall of Worry
Ethereumโs recovery after the Dencun upgrade demonstrates that bull markets often overcome initial concerns or dips. The overall sentiment remains positive for Ethereumโs future growth and adoption.
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