The downfall of FTX has likewise left its mark on the Ethereum (ETH) price. Over the last 30 days, Ether has recorded a fall of around 20%. At the time of publication, the price was at $1,171, just over the critical level of support of $1,100.
In the short term, the ETH price has found support at $1,171. Nonetheless, if the key resistance at $1,230 is not breached in the upcoming few days, a retest of the level at $1,100 could be on the cards.
An important on-chain indicator for Bitcoin (BTC) indicates that this does not have to be the case. Since the cryptocurrency market is heavily dependent on Bitcoin (BTC) as the largest digital currency by market capitalization, a bottoming of BTC, could likewise mean accelerated gains for crypto altcoins, led by Ethereum.
As digital currency exchange ByBit notes in its analysis of the market today, the MVRV ( Market Price to Realized Value Ratio) of short-term Bitcoin (BTC) holders has exceeded that of longstanding holders (HODLers) for the 1st time this cycle.
The MVRV shows periods of market euphoria when the market price was significantly higher than the discovered value, meaning the cost basis for Bitcoin (BTC) purchases. “This could suggest a possible bottom formation, especially when direction traders are doing better than HODLers with strong convictions,” the analysis states.
Ethereum: EIP-4844 Implementation in March?
In the meantime, Ethereum (ETH) investors can look forward to highly positive news. As Tim Beiko summarized, Ethereum (ETH) developers are working towards including EIP-4844 ( likewise known as proto-danksharding). This is a highly anticipated scaling proposition, in a future mainnet upgrade.
Whether EIP-4844 will be rolled out with Shanghai in March is at present pending. Nonetheless, a decision could be made on December 08. This is when the upcoming ACD, the last one in 2022 will be held. Beiko stated that” it’d be great to wrap up the year with the final specs for Shanghai”.
Up to now, EIP-3651 (Warm COINBASE), EIP-3855 (PUSH0 statement), EIP-3860 (Limit and counter init code) and EIP-4895 (Beacon chain push withdrawals as operations) are guaranteed for the Shanghai hard fork of Ethereum.
EIP-4844 is intended to introduce a new transaction format called shard-blob transaction. This allows data to be stored off-chain and accessed temporarily by Ethereum (ETH) nodes.
Liam Horne, CEO of OP Labs, the developer of Optimism that uses roll-ups, expressed that L2 fees could become much cheaper. “This is a GAME CHANGER for the rollup-centric roadmap, as fees could be lowered ~100x,” Horne said.
Ethereum (ETH) co-founder Vitalik Buterin commented on EIP-4844 as following:
This is a critical 1st step to massively lower fees on L2, helping to make it affordable for much larger numbers of users to directly use on-chain applications instead of relying on cefi intermediaries.
Yesterday, the broadest commitment across all developer teams was that EIP-4895 should happen quickly, ideally around March. “There are other things they [the Ethereum (ETH) client teams] are working on in parallel, and if these can make it at the same time, we should include them, but withdrawals guide the fork,” Beiko summarized.
Simultaneously Beiko confirmed that EIP- 4844 is the second most important thing. Thus, if all goes as reported by strategy, proto-danksharding still has an opportunity to be integrated in the Shanghai hard fork.
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