Ethereum Price Reaches 18-Month High: Current On-Chain Data for ETH!

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• Ethereum (ETH), the world’s second-largest cryptocurrency, is making a strong move by reaching levels not seen in the last 18 months.
• While Bitcoin has momentarily halted its momentum, attention is shifting to Ethereum and various altcoins, which are experiencing significant upward movement again.
• During the recent ACDE meeting, developers stated that Ethereum is ready to implement the Dencun fork of the Goerli testnet in January 2024.

Ethereum price is gaining momentum by reaching an 18-month high: What do the current on-chain data suggest for ETH?

Ethereum Price Reaches 18-Month High

Ethereum (ETH), the world’s second-largest cryptocurrency, is making a strong move by reaching levels not seen in the last 18 months. As of the time of writing, ETH is trading at $2,375 with a 5.61% increase, surpassing a market value of $285 billion. Amid the recent price surge, some investors are sharing $3,500 price targets for ETH.

Traders in the cryptocurrency market are currently grappling with concerns of a potential bull trap. While Bitcoin has momentarily halted its momentum, attention is shifting to Ethereum and various altcoins, which are experiencing significant upward movement again.

On-chain data shows contrasting behavior between off-exchange and exchange wallets. The top 150 off-exchange wallet addresses hold a record-high Ethereum supply of 54.6 million ETH. On the other hand, the amount of ETH held by exchange wallets has dropped to the lowest level in 5 years, standing at 9.3 million ETH.

On-chain data provider Santiment reports that Ethereum has reached $2,349, marking the highest level since June 2022. The encouraging combination of the long-term trend showing an increase in the wealth of the largest off-exchange whale wallets and the diminishing selling power of the largest exchange whale wallets suggests a promising scenario for sustainable growth.

All Eyes on the Ethereum Dencun Update

During the recent ACDE meeting, developers stated that Ethereum is ready to implement the Dencun fork of the Goerli testnet in January 2024. Most teams are prepared to conduct the testnet fork test, and plans have been made for a more comprehensive Goerli shadow network fork in the coming weeks.

Dencun aims to significantly increase data availability for layer-2 rollups through proto-danksharding. This development could lead to a reduction in transaction costs for rollups and ultimately contribute to the benefit of end-users. The overall impact of Dencun is expected to enhance Ethereum’s scalability through rollups, optimize transaction fees, increase network security, and implement various updates.

The Ethereum Foundation recommends users who rely on Goerli and need stable testnet environments to initiate the migration process in advance. In an environment where Goerli staking is permissionless, the exit of validators associated with client and test teams holding a significant majority stake brings potential stability concerns. Simultaneously, teams are preparing to use this transition period to test issues such as delayed finality, activity leaks, and mass exits.