Ethereum Improvement Proposal EIP-4844 turns experts bullish, will ETH price rally?
- Ethereum network’s upcoming Shapella upgrade, also popular as Shanghai has experts in the community excited for ETH.
- The Shanghai hard fork aims to reduce transaction costs and unlock new applications through Ethereum Improvement Proposal 4844.
- Ethereum price hit an eight-month high as anticipation builds around the April 12 upgrade.
Ethereum blockchain’s upcoming Shanghai hard fork has a key Ethereum Improvement Proposal 4844 (EIP-4844). Experts in the crypto community are focused on the implementation of the upgrade that reduces transaction cost on the ETH blockchain.
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Ethereum’s EIP-4844 could reduce transaction costs for users
Ethereum blockchain’s EIP-4844 is one of the upgrades bundled in the Ethereum Shanghai hard fork, also known as Shapella upgrade. This Ethereum Improvement Proposal has the potential to tackle one of the long-standing challenges of the ETH blockchain. The proposal could reduce the transaction cost for users.
EIP-4844 is known as proto-danksharding and this upgrade intends to reduce fees and increase the throughput of transactions on the ETH blockchain. It intends to achieve these two objectives by introducing a new transaction type.
Expert commentary on Ethereum’s EIP-4844
Anthony Pompliano, a crypto expert and influencer and Bitwise CIO Matt Hougan expressed their excitement for the upgrade, arguing that it could emerge as a “game changer” for the Ethereum blockchain. With the rollout of NFT projects on the Ethereum blockchain there has been a spike in activity and increase in transaction fees. This makes EIP-4844 one of the key upgrades for the Ethereum blockchain and its users.
Ethereum price recently hit an eight month peak, climbing above the $1,900 level. As the anticipation surrounding the April 12 upgrade spreads there is a spike in bullish sentiment among holders.
Analysts believe Ethereum price is building up for a squeeze. With a large volume of shorts opening up in ETH, funding is negative while price of the altcoin grinds against resistance. @JJCycles, a crypto analyst on Twitter shared his bullish thesis on Ethereum.
Beras gonna be slapped in the face today.
— ALTBTC (@JJcycles) April 4, 2023
Pretty significant portion of shorts just came in, OI up bigly, funding negative while price grinds against resistance.
Building up for a squeeze here.$ETH pic.twitter.com/Nupaj64orx
The expert believes Ethereum price is set up for a rally in the short-term.
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
