Ethereum price continued its rally after the developer activated the Fusaka upgrade, and as its network speed soared. ETH soared to $3,205, up modestly from last week’s low of $2,630. So, will the ETH price rally continue?
Ethereum Price Rises After Fusaka Upgrade
ETH price jumped after the closely watched Fusaka upgrade went live on Wednesday. This upgrade introduced new network features, the most important being Peer Data Availability Sampling (PeerDAS). PeerDAS slashed bandwidth usage by up to 85%.
The upgrade also introduced lower transaction costs and Blob Parameter Only (BOB) forks. This upgrade likely explains why Ethereum hit an all-time high in terms of transactions per second (TPS) on Wednesday.
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Data compiled by Arkham shows that the speed soared to 32,950 TPS, higher than last week’s record of 31,000.
The soaring transaction speed is crucial as it makes Ethereum more competitive than other chains. In most cases, newer chains like Monad and Keeta use speed as their primary benefit to Ethereum.
There is a chance that Ethereum will continue to do well in the coming months. For example, daa shows that the network continues to gain market share in the DeFi industry, with a market dominance of over 60%.
Nansen data show that Ethereum’s network is doing well, with its transactions rising by 9.4% in the last 30 days to 46 million. The number of active addresses in the network grew by 3.4% to 8.5 million.
Ethereum price also rose as investors anticipated increased demand amid top American companies moving into the crypto industry. Vanguard, with over 50 million users and $10 trillion in assets, has started offering ETF trading.
Similarly, Charles Schwab, a company with over $10 trillion in assets, will start offering crypto trading solutions in early next year, a move that may drive more demand.
ETH Price Technical Analysis
The daily chart shows that the Ethereum price rebounded to the highest point since November 14. It rose to $3,213, up sharply from last week’s low of $2,643.
The coin formed a double bottom, a typical bullish reversal pattern in technical analysis. Also, the Relative Strength Index (RSI) has soared and crossed the 50 expansion zone. It also moved above the 50% Fibonacci Retracement level at $3,167.
ETH price has also formed a falling wedge pattern, a common bullish reversal sign. Therefore, the token will likely rebound and hit the next key level at $4,000. A drop below the support at $2,643 will invalidate the bullish outlook.
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