Following the recent Decun update, Ethereum experienced significant transformations within its ecosystem. Consequently, the fees associated with ETH reached a historical low, influencing the token’s deflationary nature significantly.
But how will these alterations affect the price of ETH?
Is Ethereum Evolving?
Recently, IntoTheBlock shared a tweet disclosing several crucial developments. Post-Decun, Ethereum Mainnet fees hit an all-time low due to the surge in Layer 2 (L2) transactions. The implementation of EIP-4844 led to a 10x reduction in L2 costs, fostering an unprecedented level of activity.
This boost proved beneficial for L2s as their transaction volume and usage skyrocketed recently. Nonetheless, there was more to unfold. With the decrease in fees burned, ETH transitioned from a deflationary state to an inflationary one, marking a reversal from its previous trend.
Typically, deflationary attributes are viewed favorably as a decrease in supply often hints at a potential price surge for the asset.
Given the circumstances surrounding ETH this time, CryptoCrypto sought to delve deeper into its present state.
Anticipated Outcomes for Ethereum
According to CoinMarketCap, following a week of declines in price, ETH bulls regained control as its value surged by over 2% within the previous 24 hours.
At the current moment, ETH is traded at $2,476.41, commanding a market capitalization exceeding $298 billion.
Following the price incline, more than 9 million Ethereum addresses now find themselves in a profitable position, accounting for over 50% of the total ETH addresses.
Subsequently, a thorough examination of the token’s on-chain data was conducted to forecast potential impacts of the altered characteristic on ETH’s price in the upcoming days.
An assessment of CryptoQuant’s data revealed a decrease in ETH’s exchange reserve, indicating a surge in buying pressure on the token, a bullish signification.
Moreover, other bullish indicators surfaced during our analysis. Notably, the total volume of coins moved by ETH surged by 158.76% within the last 24 hours.
Furthermore, the cumulative count of active wallets engaged in coin transactions witnessed a 19.01% increase compared to the previous day.
With a majority of metrics painting an optimistic picture, CryptoCrypto examined Ethereum’s daily chart to extract insights from market indicators.
Our analysis indicates that Ethereum is currently challenging its 20-day simple moving average (SMA) resistance.
A successful breakout from this level could see ETH reaching $3.5k in the forthcoming days. However, the MACD displayed a bearish edge in the market, suggesting a potential dip to $2.2k.