Ethereum Price Chart

On Friday, the Ethereum price prediction is slightly bearish following a bearish breakout of ascending triangle pattern. However, Shanghai’s progress is keeping the ETH losses limited.

Following The Merge, Ethereum (ETH) core developers are focusing their efforts on Shanghai, the cryptocurrency’s next upgrade, beginning with the launch of the “Shandong” test network (testnet).

Shanghai Upgrade

The Ethereum Foundation’s JavaScript Team announced the launch of an early pre-Shanghai testnet earlier this week. This experimental testnet is powered by EF DevOps and activates several Shanghai-considered EIPs for early client testing.

It could happen in 2023 and will be Ethereum’s first major update since the Merge when the cryptocurrency switched from a proof-of-work consensus model to a proof-of-stake consensus model.

Ethereum developers may begin testing upcoming protocol updates, and Shandong will serve as the Shanghai upgrade’s testnet. Those who stake ether and are validators can no longer withdraw their 32 ether once staked.

As a result, this upgrade includes the ability for blockchain validators to withdraw 32 Ether from staking contracts. Because of a code introduced in the Shanghai update, validators on the Ethereum Network will be able to withdraw their staked ether.

According to the team, the testnet has an EL block explorer, a faucet to fund transaction tests, and an open RPC endpoint if you do not want to build the node, among other features. This should also encourage DApps and front-end developers to use the testnet more frequently and explore the code base. According to the researchers, the code regulates network operations and various protocol modifications.

Ethereum Improvement Proposals

Currently, various Ethereum Improvement Proposals for Shanghai are being considered, which may address some scalability and efficiency issues. The team focused on the first five Ethereum Improvement Proposals (EIPs) that would be implemented on the testnet:

  1. EIP-3540: EVM Object Format (EOF) v1
  2. EIP-3651: Warm COINBASE
  3. EIP-3670: EOF – Code Validation
  4. EIP-3855: PUSH0 Instruction
  5. EIP-3860: Limit and meter initcode

EIP 4844, which adds proto-danksharding, is being considered. The network will be able to handle more data thanks to this proposal, which would result in lower gas prices.

EIP 3540 will cover the Ethereum Virtual Machine (EVM), the program that powers Ethereum smart contracts and is connected to one of the EIPs covered by Ethereum’s London update (EIP 3541).

The concept will make future EVM changes easier and allow for the separation of code and data.

Ethereum Price Prediction – Is it Time to Accumulate ETH?

The update would significantly speed up and simplify the processing of massive amounts of Ethereum transactions on layer-2 networks such as Arbitrum and Optimism.

According to Vitalik Buterin, co-founder of Ethereum, the future of Ethereum is dependent on optimizing the speed and cost of transactions on such layer-2 networks. Furthermore, the news has increased the price of ETH.

On October 21, ETH/USD is trading at $1,300, down less than 1%; however, the Shanghai Progress announcement appears to be keeping the downtrend in check. Technically, the ETH/USD pair is trading bearishly, with a target of $1,272 in sight. This level is extended by a triple bottom pattern, and closing candles above it could initiate an uptrend.

Ethereum Price Chart – Source: Tradingview

On the upside, the 50-day moving average is likely to extend resistance at $1,290, and a cross above this can open up additional buying opportunities until $1,308.

To summarize, failure to break below the $1,270 level has the potential to drive a bullish reversal in ETH, so keep an eye on it.

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