Last news: January is the month set by the developers of Ethereum for the first implementation of the testnet for the next significant update called ‘Dencun’.
In addition, developers have outlined the end of February as a flexible target for the launch of the update on the main Ethereum blockchain. Let’s see all the details below.
Summary
News coming in January: the first implementation of the ‘Dencun’ Testnet on Ethereum
As anticipated, according to the latest news, Ethereum developers are intensifying the testing process in preparation for the upcoming Dencun update. This represents a crucial milestone expected for next year.
This update will introduce the data storage capability through a new process called “proto-danksharding”.
During a biweekly call held on Thursday, the developers announced that they are aiming for January 17th to run Dencun on the Goerli test network (testnet).
This long-awaited update will enable “proto-danksharding”, a process that reduces fees for level 2 rollups and enhances the blockchain by increasing data space in the form of “blobs”.
Tim Beiko, protocol support lead at the Ethereum Foundation, stated the following:
“Obviously, in case of significant problems or unexpected events, we can always withdraw.”
It has also indicated that the goal is to publish the post on the fork during the week of January 8th, giving users at least one week for the update.
Initially scheduled for the last quarter of 2023, Dencun has been postponed to 2024 due to the engineering complexities associated with the update.
The developers have also outlined a timeline draft for Dencun’s tests, foreseeing the execution of a test network called Sepolia on January 31st, followed by the Holesky testnet on February 7th.
The next goal will be to distribute the changes on the mainnet around the end of February, although these dates are subject to change depending on the outcome of the testnet forks.
Dencun would represent the first major update since the release of Shapella earlier this year, which allowed for ether withdrawals in staking (ETH) from the blockchain.
All the details about the Dencun update
Regarding the above update, the name ‘Dencun’ is a portmanteau that combines two simultaneous updates regarding the two main levels of the Ethereum blockchain.
The execution level, containing the protocol rules, will be subject to the update called “Cancun”, while the consensus level, responsible for block validation, is called “Deneb”.
This clever combination of names, similar to the Brangelina pairing for the Shanghai and Capella updates (“Shapella”), reflects the creative approach of the developers.
At the center of Dencun is the ‘EIP 4844, known as “proto-danksharding”, an innovative proposal aimed at scaling the blockchain by expanding the space for data “blobs”.
It is expected that these changes will help reduce fees for level 2 rollups.
Initially, before Shapella, developers had decided to postpone the inclusion of EIP 4844 in the context of updates, given its complexity, preferring to focus on ETH withdrawals in staking.
However, then Ethereum developers have delved into the technical details of EIP 4844.
In particular, Tim Beiko stated that by default, the scope is associated with Cancun, but it is open to changes in the future.
Dencun should also include other technical updates known as EIP 6780, 6475, and 1153.
Ethereum on the edge: price struggles below $2,250
The price of Ethereum is facing a considerable challenge as it tries to surpass $2,250. Ethereum is indeed showing worrying signs, leaving room for potential declines.
The price of Ethereum has once again attempted to break through the resistance barriers at $2,250 and $2,265, but has failed to consolidate above $2,250. There have been more than two rejections near the levels of $2,250 and $2,265.
Despite a recent low near $2,155, Ethereum is now showing a consolidation phase above the 23.6% Fibonacci retracement level from the high of $2,265 to the low of $2,155.
The hourly chart of ETH/USD shows a bullish trend key with support at $2,170. Currently, Ethereum is trading just below $2,220 and the 100-hour simple moving average.
On the upside, the price faces resistance at $2,210, near the 50% retracement level from the recent decline. The next key resistance is located near $2,250 or $2,265.
A decisive breakthrough above $2,265 could push the price towards $2,320, with the next resistance at $2,365. Further gains could lead Ethereum to test the $2,450 zone, paving the way for the $2,500 level.
However, if Ethereum fails to break the $2,250 resistance, a decline could occur.
The initial support is located near $2,170 and the trendline, while a key support could be the $2,120 zone.
A downside break and a close below $2,120 could trigger strong bearish pressure, with Ethereum potentially heading towards the support at $2,000.
Further losses could push the price towards the level of $1,880 in the next sessions.
