Overview
"Dencun" signifies a forthcoming advancement for the Ethereum blockchain, introducing a new feature called proto-danksharding. This development aims to reduce transaction costs and data burdens on layer 2 solutions, which are scalability frameworks integrated with Ethereum. The implementation of proto-danksharding will establish a new data storage unit referred to as "blobs," augmenting the network's ability to handle and validate larger data volumes.
By prioritizing the enhancement of network efficiency and reduction of transaction fees, the Dencun upgrade holds the promise of attracting a broader audience of developers and users to the Ethereum DeFi ecosystem. This increased functionality and adoption could potentially drive a surge in demand for ETH, consequently enhancing its market value.
Bitcoin Price Analysis
The recent surge in Bitcoin prices propelled the Crypto Fear and Greed Index to a remarkable 76 on February 17, signaling "Extreme Greed." In times of market optimism, this exuberance can endure, yet caution is advised; as the ascent steepens, the probability of a downturn increases. Let’s analyze the charts of Bitcoin.
On February 12, Bitcoin managed to break through the resistance area at $47,000 - $47,500 with a fairly bullish candle, rising by 3.35%. Following the release of Consumer Price Index (CPI) data below analysts' projections, Bitcoin experienced a correction, dropping to $48,300 from its previous day's closing value of $49,917. But the long tail candlestick shows strong buying at lower levels so BTC can close at price $49.699.
The data indicates that Exchange-traded Funds (ETFs) experienced inflows exceeding $600 million on February 13th. During the period from February 12th to February 16th, spot bitcoin ETFs saw a net inflow of $2.2 billion. This is reflected by the surge in the price of BTC on February 14, experiencing a 4.22% increase, reaching a peak of $52,043, and concluding at $51,795 and until February 18, it managed to stabilize above $50.000 level.
Ethereum Price Analysis
Since the beginning of 2024, the price movement of ETH has formed a bullish ascending triangle pattern with a target range of $2,750 - $2,800. After successfully breaking the first resistance at $2,350 in the first week of February, it didn't take long for the Ethereum price to penetrate the second resistance at $2,480 on February 12th.
The Ethereum market is currently dominated by bullish sentiment, driven by several key factors. Firstly, the imminent deployment of the Dencun update on the Ethereum network. Additionally, there is growing anticipation that this year will see the approval of Ethereum ETF applications, following the successful launch of Bitcoin ETFs. Lastly, investors are eagerly awaiting a traditional bull market post-Bitcoin halving, further bolstering optimism in the Ethereum market.
Solana Price Analysis
Solana (SOL) fell from $119 on February 14 but managed to rebound strongly, finding support at $107. This bounce suggests that the bulls have turned this level into a support zone, which could potentially pave the way for a break above $120 while the weekly price trend showcases a strong resistance at the $115 mark.
Solana has been steadily gaining traction in recent years, experiencing a significant increase in developers, now totaling 2.5K. Sustaining a consistent number of developers is a key indicator of a healthy ecosystem, highlighting its ability to attract and retain new talent.
Disclaimer
This material is for general information and is not investment advice, a recommendation, or solicitation to buy and sell any cryptocurrencies, digital assets, securities or derivative instruments, or to make any investments. Mobee is under no obligation to update this report based on information and events that occurred after this report was created and published. Any suggestions or recommendations in this report may not be appropriate for certain users.
