Summary
At the time of writing, Ethereum (ETH) is trading at $2278, down 0.51% in the last 24 hours. The price is currently in a consolidation phase, finding support around the $2275 level. If it drops below $2257, it may decline further to test the $2223 support level or even the $2141 level. Conversely, if it climbs above $2310, it may test the $2343 resistance level and potentially start a fresh rally towards $2532.
Introduction
Ethereum (ETH) has been experiencing fluctuations in its price recently. After reaching a high of $2343 on December 23, the price faced selling pressure and has since been in a consolidation phase. Traders and investors are closely monitoring key support and resistance levels to gauge the future direction of ETH.
Main Points
Since the Merge, around 339,121 ETH have left circulation, leading to accelerated deflation in the fourth quarter of 2023. The total circulating quantity of Ethereum is currently 120.18 million, the lowest since the network transitioned from proof-of-work (PoW) to proof-of-stake (PoS). The net supply has shrunk at an annual rate of 0.220%. If the changeover hadn’t happened, there would have been an annual inflation rate of 3.168% and a total supply rise of almost 4.8 million ETH.
The developers of Ethereum are preparing for the Dencun upgrade, which is set to increase data storage capacity through a new method called “proto-danksharding.” Testing for the upgrade is underway, and it is scheduled to be implemented on January 17, 2024. The Dencun upgrade is a significant milestone for Ethereum and is highly anticipated by the community.
Conclusion
Ethereum’s price is currently in a consolidation phase, finding support around the $2275 level. Traders are watching closely to see if the price breaks below $2257, which may lead to further declines. Alternatively, a climb above $2310 could signal a test of the $2343 resistance level and potentially initiate a fresh rally. The upcoming Dencun upgrade is also generating excitement among developers and users, as it promises to increase Ethereum’s data storage capacity.