ETH Price Jumps With Dencun Upgrade Live On Second Testnet, Eyes $2400 Break

The post ETH Price Jumps With Dencun Upgrade Live On Second Testnet, Eyes $2400 Break appeared first on Coinpedia Fintech News

With a new upgrade on the Second test, “Dencun,” the Ethereum community anticipates a bull run coming soon. As ETH’s price showcased a 1% jump last night, the overall trend highlights a strong breakout possibility. 

Aimed to reduce transaction cost and increase data availability with ‘blobs’, the high anticipation around the “proto-danksharding” feature is growing significantly.  

Amidst the rising sentiments around the altcoins, Ethereum is showcasing high chances of a bull run. From the predictions around an Ethereum ETF to the new upgrades, the ETH price is ready to skyrocket in 2024. 

To find out if Ethereum will reach the $10K, check out our ETH price prediction.

ETH Price Consolidation Eyes Bullish Conclusion 

Source – TradingView

Dropping from the overhead resistance trendline, the pullback phase in ETH price takes support on the 38.20% Fibonacci level. In confluence with the demand zone at $2200, Ethereum remains strong above the psychological level of $2000.

With a range formation between the 23.60% and 38.20% Fibonacci levels, the trend momentum coils up and preps an intense move upon break. However, the improving sentiments and the new coming upgrades are increasing the bullish break possibility.

Hence, the buyers find the $2,363 break as an excellent breakout entry opportunity to ride the bullish wave. Potentially, the high momentum uptrend in ETH price can reach the $2,600 mark. 

Conversely, if buyers lose their grip and fail to maintain control above the crucial $2200 level, a bearish reversal could occur. Potentially leading to a significant drop towards the $2000 mark.

Technical indicators:

RSI indicator: The daily RSI line shows an increment in the daily RSI line as it reverses from the oversold zone. Further, with a small bullish divergence, the ETH price is ready for a bullish reversal.

The Expanding Layer-2 Base

What's interesting about Ethereum, is that it's Layer 2 ecosystem has continued to quietly pull ahead in the race for builders and users.

For me, it's much easier to simply play the long game – After all, fundamentals play out on long timelines only. pic.twitter.com/XTnYs7pirK

— liam (@daddysether) February 1, 2024

As a strong signal of the healthy network growth of Ethereum, the layer-2 user base that interacts with one or multiple layers is well above 2.5 Million. With just under 500K in 2022, the user base has grown remarkably over the past 14 months. This event signals a rise in the DeFi sector and the growing adoption of Ethereum among the masses. 

Hence, with the upcoming upgrade, the hype in the layer-2 user base is expected to increase the ETH price.