Ethereum

bullish

Value

Impact

<h2 id="key-points">Key Points</h2>
<ul>
 <li>Following the Dencun upgrade, Ethereum’s fees hit a record low, causing a surge in L2 transactions.</li>
 <li>Despite turning inflationary, Ethereum’s price action has turned bullish, with its exchange reserve dropping.</li>
</ul>
<p>The Dencun upgrade has significantly impacted the Ethereum network, leading to a substantial growth in Layer 2 (L2) transactions. This upgrade has also resulted in Ethereum’s fees plummeting to an all-time low.</p>
<h2 id="ethereum-s-changing-landscape">Ethereum’s Changing Landscape</h2>
<p>This change in the Ethereum ecosystem has also influenced the coin’s deflationary characteristic. The reduction in fees burned has caused Ethereum to become inflationary, marking a shift from its recent deflationary trend.</p>
<p>Typically, deflationary characteristics are viewed positively as they can potentially drive up the asset’s price by reducing supply. However, this doesn’t seem to be the case with Ethereum at the moment.</p>
<h2 id="ethereum-s-market-performance">Ethereum’s Market Performance</h2>
<p>Despite this shift in characteristics, <a href="https://coineagle.com/price/ethereum/" rel="noopener noreferrer nofollow">Ethereum</a>‘s market performance has been bullish. According to CoinMarketCap, Ethereum’s value has increased by over 2% in the last 24 hours, following a week of price drops.</p>
<p>At the time of writing, Ethereum was trading at $2,476.41, with a market capitalization exceeding $298 billion. This price uptick has put more than 9 million Ethereum addresses in profit, accounting for over half of all Ethereum addresses.</p>
<p>Analysis of on-chain data reveals that Ethereum’s exchange reserve is decreasing, indicating increased buying pressure and potentially signaling a bullish trend. Other bullish metrics include a 158.76% increase in the total number of coins transferred in the last 24 hours and a 19.01% increase in the total number of active wallets used for transactions.</p>
<p>Despite these positive metrics, Ethereum’s daily chart analysis reveals a testing of its 20-day simple moving average (SMA) resistance. A successful breakout could potentially see Ethereum reaching $3.5k in the near future. However, the MACD indicates a bearish advantage in the market, suggesting a possible drop to $2.2k.</p>

Ethereum’s Fees Take a Dive: Unraveling the Impact on ETH Value

Table of Contents

CoinEagle.com

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