Crypto NewsEthereum (ETH)

key a-chain indicator signals bottom is in; Ethereum core developers endorse EIP-4844

The demise of FTX also left its mark on the Ethereum (ETH)-Price. In the last 30 days, Ethereum has seen a drop of around 20%. At press time, the price is sitting at $1,171, just above the crucial $1,100 support level.

In the short-term, ETH price has found support at $1,171. However, if the key resistance at $1,230 is not broken in the next few days, a retest of the $1,100 level could be on the cards.

key a-chain indicator signals bottom is in;  Ethereum core developers endorse EIP-4844, Crypto Trading NewsEthereum price, 1 hour chart. Source: TradingView

A key on-chain indicator for Bitcoin shows that this need not be the case. Since the crypto market is heavily dominated by bitcoin as the largest cryptocurrency after market capitalization BTC bottoming could also mean accelerated gains for altcoins, led by Ethereum.

As cryptocurrency exchange ByBit notes in its market analysis today, the MVRV (Market Value to Realized Value Ratio) of short-term Bitcoin holders has outperformed that of long-term holders (HODLers) for the first time this cycle.

The MVRV shows times of market euphoria when the market value was significantly higher than the realized value, i.e. the cost basis for Bitcoin purchases. “This could indicate a possible bottoming out, especially if directional traders outperform HODLers with strong convictions,” reads the analysis.

key a-chain indicator signals bottom is in;  Ethereum core developers endorse EIP-4844, Crypto Trading NewsMVRV crosses. Source: Notes

Ethereum: EIP-4844 implementation in March?

In the meantime, Ethereum investors can look forward to some very positive news. As Tim Beiko summarized, Ethereum developers are working to include EIP-4844 (aka proto-thanksharding). This is a highly anticipated scaling proposal in a future mainnet upgrade.

Whether EIP-4844 will be rolled out with Shanghai in March is still pending. However, a decision could be made on December 8th. Then the next ACD will take place, the last one in 2022. Beiko stated: “It would be great to end the year with the final specifications for Shanghai”.

So far, EIP-3651 (warm COINBASE), EIP-3855 (PUSH0 instruction), EIP-3860 (limit and counter init code) and EIP-4895 (beacon chain push withdrawals as operations) are for the hard fork from Shanghai guaranteed Ethereum.

EIP-4844 is intended to introduce a new transaction format called shard blob transaction. This allows data to be stored off-chain and temporarily retrieved from Ethereum nodes.

Liam Horne, CEO of OP Labs, the developer of Optimism that uses roll-ups, suggested that L2 fees could get a lot cheaper. “This is a GAME CHANGER for the rollup-centric roadmap as fees could be reduced by 100x,” said Horne.

Ethereum co-founder Vitalik Buterin commented on EIP-4844 as follows:

This is a crucial first step to massively lower L2 fees and make it affordable for a much larger number of users to consume on-chain applications directly, rather than relying on cefi intermediaries.

Yesterday, the broadest commitment from any development team was that EIP-4895 should happen quickly, ideally in March. “There are other things [the Ethereum client teams] are working on it in parallel, and if they can do it at the same time, we should include them, but withdrawals lead the fork,” Beiko summarized.

At the same time, Beiko confirmed that EIP-4844 is the second most important. So if everything goes according to plan, proto-thanksharding still has a chance to be integrated into the Shanghai hard fork.

Source: Crypto News Deutsch

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button