Ethereum (ETH), the premier smart contract platform, is experiencing a downward trend in price amidst a volatile market as investors await the outcome of the FOMC meeting. The cryptocurrency saw a 1.5% drop to $2,300, struggling to maintain its position above the 50-day EMA trend. Despite the technical uncertainty, Ethereum’s development continues, with the Dencun hardfork upgrade anticipated in 2024.
The Dencun upgrade, recently launched on the Sepolia test network, represents a potential turning point for Ethereum. This upgrade includes proto-danksharding, which is expected to significantly reduce transaction costs on Layer 2 blockchains and data availability expenses, marking a pivotal development for the platform.
Ethereum’s price has seen a 20% correction from $2,714 to $2,171 following the ETF, breaking the support trend line of the expanding channel pattern that supported its price for the past three months. However, the price found new support around $2,200, leading to a 6% increase within a week and allowing Ethereum to reclaim the breached support level.
The network’s growth is also notable, with 101,000 new Ethereum addresses being created daily and 484,000 unique addresses actively engaging with the network. This growth is 28% faster than three months ago, suggesting a robust expansion of the Ethereum ecosystem.
If the channel pattern holds, ETH’s price may aim to retest the general trend line at the $3,000 level, encountering resistance between $2,430 and $2,700. The market’s response to the FOMC meeting and Ethereum’s network developments could influence the cryptocurrency’s price trajectory.