The fall of FTX also left its mark on the Ethereum (ETH) price. Over the past 30 days, Ether has seen a decline of around 20%. At press time, the price was at $1,171, just above the crucial $1,100 support level.
In the short term, ETH price found support at $1,171. However, if the key resistance at $1,230 is not breached in the next few days, a retest of the $1,100 level might be on the cards.
An important on-chain indicator for Bitcoin noted that must not be the case. Since the crypto market is heavily dependent on Bitcoin as the largest cryptocurrency by market capitalization, a bottom in BTC could also mean accelerated gains for altcoins, led by Ethereum.
As a ByBit cryptocurrency exchange Remarks in its market analysis today, the MVRV (Market Value to Realized Value Ratio) of short-term Bitcoin holders exceeded that of long-term holders (HODLers) for the first time this cycle.
The MVRV shows periods of market euphoria when the market value was significantly higher than the realized value, which is the cost basis for Bitcoin purchases. “This could suggest a possible bottom formation, particularly where direction traders fare better than high conviction HODLers,” the analysis reads.
Ethereum: EIP-4844 implementation in March?
Meanwhile, Ethereum investors can expect very positive news. As summarized by Tim Beiko, Ethereum developers are working on the inclusion of EIP-4844 (also known as proto-danksharding). This is a much-anticipated scaling proposal, in a future mainnet upgrade.
Whether EIP-4844 will roll out with Shanghai in March is currently pending. However, a decision could be made on December 08. The next ACD will be held on this date, the last in 2022. Beiko declared that “it would be great to end the year with the final specifications for Shanghai”.
So far, EIP-3651 (Warm COINBASE), EIP-3855 (PUSH0 instruction), EIP-3860 (limit and counter initialization code) and EIP-4895 (Beacon chain push withdrawals as operations) are guaranteed for the Shanghai hard fork of Ethereum.
EIP-4844 is intended to introduce a new transaction format called a shard-blob transaction. This allows data to be stored off-chain and temporarily accessed by Ethereum nodes.
Liam Horne, CEO of OP Labs, the developer of Optimism that uses roll-ups, Express that L2 fees could become much cheaper. “This is a GAME CHANGER for the rollup-centric roadmap, as fees could be reduced by about 100x,” Horne said.
Vitalik Buterin, co-founder of Ethereum commented on EIP-4844 as follows:
This is a crucial first step in massively reducing fees on L2, allowing many more users to directly use on-chain applications instead of relying on cefi intermediaries.
Yesterday, the broadest commitment from all the dev teams was that EIP-4895 should arrive soon, ideally around March. “There are other things they [the Ethereum client teams] work in parallel, and if these can do it at the same time, we should include them, but the withdrawals guide the range,” Beiko summarized.
At the same time, Beiko confirmed that the EIP-4844 is the second most important thing. So, if all goes according to plan, proto-danksharding still has a chance of being integrated into the Shanghai hard fork.