Ethereum Price Sees 7.8% Decrease Following Dencun Upgrade: Where Does the Next Support Lie?

Crypto News- After the successful rollout of the Dencun upgrade, Ethereum has found itself grappling with substantial selling pressure. In the most recent market update, Ethereum’s (ETH) price has taken a dip, marking a decline of 7.8% and currently resting at $3,669.

Ethereum Price Sees 7.8% Decrease Following Dencun Upgrade: Where Does the Next Support Lie?

This downward movement comes alongside a noteworthy market capitalization of nearly $450 billion. Adding to the market dynamics, Ethereum has witnessed a remarkable surge in its daily trading volume, which has skyrocketed by 45% to hit $32.29 billion. These fluctuations signal a period of heightened activity and volatility within the Ethereum ecosystem, prompting investors and analysts to closely monitor the next levels of support as the market navigates through this phase.

Crucial Ethereum Price Points to Keep an Eye on in the Near Future

As the Ethereum price approached the $4,000 level, it encountered a formidable barrier and subsequently began a downward correction, a pattern mirrored in Bitcoin’s movements. This decline saw ETH slipping below crucial support thresholds at $3,920 and $3,850, indicating a prevailing short-term bearish sentiment.

Further exacerbating the downward trajectory, ETH briefly breached the $3,680 support area, reaching a nadir of $3,625 before consolidating its losses. Presently, the formation of a pronounced bearish trend line is evident, highlighting resistance in the vicinity of $3,850. Key resistance levels are concentrated around $3,850 and coincide with the aforementioned trend line, closely aligning with the 50% Fibonacci retracement level derived from the recent swing high at $4,083 to the low of $3,625.

A decisive breach of the $3,880 resistance barrier may rejuvenate bullish momentum, potentially propelling ETH towards the coveted $4,000 mark. Conversely, the inability to overcome the $3,850 hurdle could perpetuate the downward trajectory. Initial support is anticipated at $3,680, followed by a substantial support zone near $3,600, with a plausible downside target at $3,500. A conclusive breach below $3,500 might precipitate a descent towards the $3,350 mark, further delineating the bearish sentiment.”

Renowned cryptocurrency analyst CrediBULL Crypto has recently highlighted a crucial price range for Ethereum, suggesting that the zone between $3,600 and $3,700 is likely to garner substantial buying interest in the near future, based on their analysis and market insights.

Furthermore, blockchain analytics firm Elliptic has made a significant discovery pertaining to a sizable transaction involving $12 million worth of Ether. This transaction was orchestrated by the notorious Lazarus Group, a North Korean hacker organization known for its illicit activities. What’s particularly alarming is that this transfer was facilitated through Tornado Cash, a cryptocurrency mixer, despite the Lazarus Group being subjected to sanctions. It appears that the hacker group has resumed its utilization of this platform, despite being under scrutiny by authorities.

Digging deeper into the origins of these funds, Elliptic has traced them back to a cyber-attack on HTX and the Heco Bridge that occurred in November. The Lazarus Group was responsible for orchestrating this attack, which resulted in staggering losses amounting to $100 million for the affected platforms.

These revelations shed light on the persistent challenges posed by cybercriminal organizations and underscore the importance of implementing robust security measures within the cryptocurrency ecosystem. As regulators and law enforcement agencies strive to tackle illicit activities, such incidents serve as a stark reminder of the ongoing battle against cyber threats in the digital realm.

Ethereum Gas Fees Decrease Below 10 Dollars

According to Santiment, a prominent on-chain data provider, the current trajectory of Ethereum’s value surpassing the $4,000 mark contrasts significantly with the market conditions observed in October and November of 2021. Notably, the present state of the network exhibits a marked decrease in transaction costs, standing at less than one-sixth of the previous levels. With gas fees averaging around $9.35, this substantial improvement can be attributed in part to the optimizations in network fees stemming from Ethereum’s transition to Ethereum 2.0.

The shift to Ethereum 2.0 has played a pivotal role in enhancing the efficiency and scalability of the Ethereum network. By implementing features such as proof-of-stake consensus mechanism and sharding, Ethereum has been able to alleviate congestion and reduce transaction costs significantly. This reduction in gas fees not only represents a positive development for existing Ethereum users but also serves as a catalyst for wider adoption and utilization of the network.

Lower transaction costs make Ethereum more accessible to users and developers alike, facilitating a broader array of decentralized applications (dApps) and use cases. As a result, the Ethereum ecosystem is poised for continued growth and innovation, with reduced barriers to entry and enhanced scalability paving the way for a more robust and sustainable decentralized future.