The world’s second-largest cryptocurrency Ethereum (ETH) is making very strong moves hitting levels not seen in the last 18 months. As of press time, ETH is trading 5.61% up at a price of $2,375 with a market cap of $285 billion. Amid the recent price breakout, some investors have already been sharing ETH price targets of $3,500.
Traders in the cryptocurrency market are currently grappling with apprehensions of a potential bull trap. Although Bitcoin has momentarily halted its momentum, the spotlight shifts to Ethereum and various altcoins, which are experiencing significant upward surges once again.
Ethereum Non-Exchange Wallets Accumulate
On-chain data shows a contrasting behavior between non-exchange and exchange wallets. The top 150 non-exchange wallet addresses are holding an all-time stash of Ethereum at 54.6 million ETH. On the other hand, the exchange wallet holdings have dropped to a 5-year low at 9.3 million ETH.
On-chain data provider Santiment reports that Ethereum has climbed to $2,349, marking its highest level since June 2022. The encouraging combination of the long-term trend showing an increase in wealth for the top non-exchange whale wallets and reduced sell-off power for the top exchange whale wallets suggests a promising scenario for a sustained ascent.
All Eyes on Ethereum Dencun Upgrade
During the recent ACDE meeting, developers highlighted that Ethereum is on track to execute the Dencun fork of the Goerli testnet in January 2024, pending smooth progress. The majority of teams are prepared to conduct the testnet fork test, and plans are in place for a more extensive Goerli shadow network fork in the coming weeks.
ACDE#176 happened earlier today: we discussed the state of Dencun, timelines for testnets, and how to approach planning the following network upgrade ⛓️
Recap below 👇 https://t.co/PhGBkYxhYN
— timbeiko.eth ☀️ (@TimBeiko) December 7, 2023
Dencun is set to significantly boost data availability for layer-2 rollups through proto-danksharding. This enhancement is likely to lead to a decrease in transaction costs for rollups, ultimately benefiting end users. The overall impact of Dencun includes the improvement of Ethereum’s scalability through rollups, optimization of gas fees, enhancement of network security, and implementation of various housekeeping updates.
The Ethereum Foundation is recommending users who depend on Goerli for stable testnet environments to initiate the migration process in advance. While Goerli staking is permissionless, the exit of validators associated with client and testing teams, holding a substantial majority stake, introduces potential stability concerns. Simultaneously, teams are preparing to utilize this transition period to test aspects such as delayed finality, inactivity leaks, and mass-slashings.
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