After Shanghai, this is the next Ethereum update to watch out for

Ethereum network’s successful completion of the Shanghai upgrade fueled optimism in the ETH holder community. The next big upgrade to look forward to is proto-danksharding or Ethereum Improvement Proposal (EIP-4844). 

EIP-4844 is the first prototype of proto-danksharding, a concept that boosts the Ethereum blockchain’s scalability by splitting it into smaller pieces. 

Also read: Here’s how Ethereum could recover its losses since Shapella with massive deposits

EIP-4844 and what it means for Ethereum holders

Ethereum network went through a series of changes bundled in the Shanghai and Capella upgrades, together known as “Shapella.” After the successful implementation of Shapella, the Ethereum network is heading towards a scalability upgrade through a concept referred to as “proto-danksharding.” 

The concept has been in development since mid-2022 and it is aimed at increasing scalability and reducing “fees” for Ethereum users. 

Vitalik Buterin, the co-founder of Ethereum shared his vision and roadmap for the altcoin in a recent tweet, calling the Verge, Purge and Splurge as the next three milestones in Ether’s development. 

EIP-4844 is the first step towards boosting the efficiency of data storage on the ETH blockchain. To do so, the network splits the blockchain into smaller pieces or “shards,” like mini blockchains and these help increase space for processing of transactions. This effectively reduces fees for users. 

The KZG Ceremony kickstarts EIP-4844’s arrival on Ethereum

Ethereum’s community of developers have announced a coordinated public ritual to lay the foundation for further scaling efforts on the altcoin’s blockchain. All users who used their Ethereum wallet addresses at least four times before January 13, 2023 are welcome to participate in the “Trusted Setups” event. 

KZG Ceremony

The ceremony is expected to bootstrap the privacy features of the blockchain and support scaling mechanisms. 

EIP-4844 is expected to launch in Q3 2023, and the ceremony is currently underway. 

Where is Ethereum price headed next?

Ethereum price is currently in a multi-month uptrend that started in June 2022. The altcoin is currently in an ascending parallel channel, a bullish chart pattern, as seen below. Ethereum price is above the three Exponential Moving Averages (EMAs) at 50, 100 and 200-day. 

There is a reversal candlestick pattern on the daily price chart, followed by a green candle and awaiting further confirmation of an uptrend. Key resistances for Ethereum are the upper trendline forming the channel at $2,143, and the 38.2% Fibonacci Retracement at $2,393.70. 

In the event that the bullish thesis is invalidated and Ethereum price plummets below support at $1,716, the next key levels are $1,431 and the lower trendline forming the channel at $1,200. 

ETH/USD 1D price chart 

As long as Ethereum price stays above support at $1,716, the uptrend is intact. A decline below the midpoint of the channel between $1,600 and $1,716 could signal the beginning of a downtrend in ETH price.