Chart of the day - Ethereum (04.01.2024)

• Testing phase begins on January 17, 2024, on the Goerli network.
• Subsequent tests on the Sepolia and Holesky networks on January 31 and February 7, 2024, respectively.
• Introduction of "proto-danksharding" to enhance data storage and reduce gas fees.
• Anticipated positive impact on Ethereum's market performance and network activities.

In 2024, Ethereum is set to undergo significant upgrades, with the Dencun update being a pivotal development. The upgrade's testing phase is scheduled to commence on January 17, 2024, on the Goerli network, followed by tests on the Sepolia and Holesky networks. The Dencun upgrade, marking a considerable progression since the Shapella hard fork, aims to enhance Ethereum's scalability and operational efficiency, particularly in data storage capacity. A key feature of this upgrade is the introduction of "proto-danksharding," expected to substantially increase the network's bandwidth and optimize performance.

This upgrade is expected to address key challenges of scalability and efficiency, potentially marking a landmark achievement in Ethereum's evolution towards a more scalable and efficient blockchain ecosystem.

In 2023, Ethereum remained in the shadow of Bitcoin, recording a lower rate of return. However, many indications suggest that this trend may reverse this year. From a technical perspective, maintaining the support zone around 2130 USD will be crucial for Ethereum in the short term. This level was tested yesterday during a brief panic caused by heated emotions.