The crypto ETH still below $4,000 despite the success of Dencun

In the breakneck race to innovation, Ethereum continually adds new strings to its bow to enchant cryptocurrency enthusiasts. The latest discovery? A hard fork dubbed Dencun, the fruit of the tireless work of the team led by visionary Vitalik Buterin. Intriguingly, this major update has not had the desired effect on the price of ETH, leaving observers puzzled.

Success of Dencun: ETH Struggles to Trade Above 4,000 Dollars

Dencun, a blend of Cancun and Deneb, is the center of attention. This long-awaited hard fork promises to bring a host of improvements to the Ethereum ecosystem: transaction processing capacity reaching up to 100,000 transactions per second, significant gas fee reduction, etc.

Despite the success of the update, the price of ETH was not positively affected, continuing to consolidate below the 4,000-dollar threshold. The cryptocurrency tried to break through this crucial resistance level on Monday and Tuesday but failed to maintain its position above, notes Bitcoin.com.

For over 24 hours, ETH has been trading between 3,930 and 3,970 dollars. However, it is worth noting that ETH has maintained its upward momentum, with gains exceeding 18% in the past fourteen days and nearly 60% in the last thirty days.

Moreover, the introduction of the Dencun upgrade is expected to bring about an increased demand for ETH, potentially triggering a new bull run that could bridge the gap between current trading prices and its previous all-time high (ATH) of $4,878, achieved in November 2021.

ETH: A Recovery To Match Expectations

Last March 11, Ethereum broke the $4,000 barrier, following in the footsteps of Bitcoin. Reaching a new peak above $4,050, it then suffered a slight correction downwards yesterday.

After a dip to $3,830, the price recovered, breaking the $4,000 resistance. It even surpassed the 50% retracement level of the recent downturn.

However, resistance lingers at $4,085. If this bar is not broken, a downward correction is likely, with initial support at $4,020. Below that, the 100-hour SMA provides major support at around $3,965. In case of a break, Ethereum could slide towards $3,880, or even $3,830.

At the time of writing this article, it was trading at 3,970.38 dollars a piece.

Dencun: Another Step Forward?

Dencun is both the most complex fork we've shipped since the Merge, and tied for "most total EIPs in a fork" with Byzantium. There were more teams than ever involved in the process, and it somehow all worked out smoothly…! Grateful to work with all of them, onto the next one🫡!

— timbeiko.eth ☀️ (@TimBeiko) March 13, 2024

The much-anticipated Dencun update has been successfully deployed on the Ethereum mainnet. Reading the tweet below, Tim Beiko, a lead developer at the Ethereum Foundation, rejoices over the accomplishment, but highlights the faced challenges.

This upgrade aims to optimize layer 2 networks such as Arbitrum, Optimism, and Coinbase Base, and to address congestion issues by freeing up space for more transactions. However, it involves the loss of full long-term data.

Despite this, layer 2’s adopting the update anticipate significantly reduced gas costs, thus offering greater accessibility to the Ethereum community.