The drop in FTX has also left its mark on the price of Ethereum (ETH). In the past 30 days, Ether has registered a drop of almost 20%. At the time of writing, the price was trading at $1,171, just above the key $1,100 support level.
In the short term, ETH price found support at $1,171. However, if the key USD 1,230 resistance is not broken in the coming days, a retest of the USD 1,100 level could be on the agenda.
An important on-chain indicator for bitcoin indicates that this may not be the case. Since the crypto market relies heavily on Bitcoin as the largest cryptocurrency by market capitalization, the lower end of BTC could also mean rapid gains for altcoins led by Ethereum.
As cryptocurrency exchange ByBit noted in its analysis of the market today, the MVRV (Market Value to Realized Value Ratio) of short-term bitcoin holders surpassed that of long-term holders (HODLers) for the first time this cycle.
MVRV exhibits periods of market euphoria where the market price was significantly higher than the realized price, creating a cost base for bitcoin purchases. “This could suggest a possible bottom formation, especially as directional traders outperform high conviction HODLers,” the analysis said.
Ethereum: EIP-4844 Deployment in March?
In the meantime, Ethereum investors can wait for overwhelmingly positive news. As summarized by Tim Biko, the Ethereum developers are working on the inclusion of EIP-4844 (aka proto-dunksharding). This is a highly anticipated scaling proposition in future mainnet upgrades.
Whether or not the EIP-4844 will launch with Shanghai in March is currently pending. However, the decision on this can be taken on 08 December. Then the next ACD will be the last one, in 2022. Biko Having said that “it would be great to end the year with final specifications for Shanghai”.
So far, EIP-3651 (warm COINBASE), EIP-3855 (PUSH0 statement), EIP-3860 (limit and counter init code), and EIP-4895 (beacon chain push revocation as operation) for Ethereum’s Shanghai hard fork. Guaranteed. ,
EIP-4844 aims to introduce a new transaction format called shard-blob transactions. This allows data to be stored off-chain and temporarily accessed by Ethereum nodes.
Liam Horne, CEO of OP Labs, developer of Optimism Using Roll-Up, Emphatically That L2 fee can be very cheap. “This is a game changer for the rollup-focused roadmap as fees can be reduced by ~100x,” said Horn.
Ethereum co-founder Vitalik Buterin noticed on EIP-4844 as follows:
This is an important first step towards massive pricing reductions for L2, making it affordable for a large number of users using on-chain applications directly rather than relying on CEFI intermediaries.
Yesterday was the broadest commitment from all developer teams that EIP-4895 should happen soon, ideally around March. “There are other things [the Ethereum client teams] work in parallel, and if these can make it at the same time, we have to include them, but the slack guides the fork,” Biko summed up.
At the same time, Biko confirmed that EIP-4844 is the second most important. So if all goes according to plan, proto-dunksharding still has a chance to be integrated into the Shanghai hard fork.