Ethereum (ETH) Falls Below $2,500 Will it Bounce Back Amid Network Upgrade?

Ethereum (ETH) saw a promising start this week, with its price rallying from the $2,300 support to over $2,500. However, the upward momentum didn't last, as ETH is now below $2,500.

According to Coinmarketcap, ETH is down 1.62% over the past day, trading at $2,465. Its daily volume is up significantly by 73.89%, showing the possible return of buyers.

As shown in its 4-hour chart, Ether has grappled with significant bearish pressure after testing the resistance level at $3,000. With the price struggling to maintain momentum, all eyes are on Ethereum's upcoming network upgrade. This upgrade is speculated to reignite bullish sentiment and push prices higher.

This analysis explores Ether's subsequent trajectory and bullish factors that could fuel its price recovery.

Network Upgrade To Boost ETH's Price

Ethereum is gearing up for an upcoming upgrade that will increase its speed and scalability. According to a GitHub post by Ben Adams, co-founder of Illyriad Games, the EIP-7781 was introduced on October 5th.

This program will reduce the time spent adding a new block to the Blockchain, making transactions faster and more efficient.

Justin Drake, a researcher at the Ethereum Foundation, approved the EIP-7781 proposal on GitHub. He mentioned that this proposal fits well with ideas from Ethereum's co-founder and scaling organizations.

Drake added that reducing the time it takes to process blocks will make Uniswap v3 about 1.22 times more efficient. This could benefit users by saving $100 million yearly in trading costs on CEXs and DEXs.

The proposal, called EIP-7781, will also improve Ethereum's smart contracts by reducing the time it takes to confirm transactions by 33%. This will help balance out heavy traffic across different time slots. In addition, the EIP will help reduce the fees for layer-2 solution, increasing the strength of Blobs.

In an X post, an unknown dev, Cygaar, tagged the proposal as the first step in improving Ethereum L1's performance. However, some developers warned that reducing block times could pose a risk to solo stakers.

On the upside, this proposal will likely boost the price of ETH. As transaction fees become low, more people might use Ethereum for trading, which could increase demand for ETH.

Binance Traders Prepare to Buy than Sell ETH - Data Shows

Amidst the present volatility in the market, some traders in the Binance exchange are still optimistic about the coin. Recent CoinGlassdatashows that 72% of ETH traders have activated long positions on Binance.

This suggests bullish sentiment, indicating they believe the coin will rebound soon. This growing optimism might drive demand, helping ETH's price recover from recent dips.

Meanwhile, 27.97% of traders are skeptical about ETH's price surge.

ETH Price Analysis: ETH Eyeing $2,800 as Bullish Signals Strengthen

Ethereum shows promising signs of a potential rally based on key technical indicators. It currently trades above the 20-day Simple Moving Average (SMA) line, indicating that ETH is gaining momentum.

This suggests a positive shift in market sentiment, as prices above the 20 SMA often signal an uptrend. However, ETH needs to break above the upper Bollinger Band line for more decisive confirmation of this bullish trend. A breakout beyond the 20 MA could trigger a price surge toward $2,800.

The Relative Strength Index (RSI) also sits at 59, which shows that ETH is in a neutral-to-bullish zone. An RSI between 50 and 70 often indicates growing buying pressure but is not yet in overbought territory. This means ETH has room to rise without the immediate risk of a sharp pullback.

Based on these indicators, traders can expect ETH to climb higher if buyers sustain momentum, especially if it breaks the Bollinger Band line.

Pepe Unchained: The Next Big Thing in Memecoins?

While traders await a more profound rally for Ethereum, ICO cryptos like Pepe Unchained (PEPU) are gaining momentum. Pepe Unchained has $17 million in its presale, indicating significant investor interest.

Inspired by the famous Pepe the Frog meme, PEPU offers unique features, positioning itself among the low-cap gems to invest in 2024.

What is Pepe Unchained?

Pepe Unchained is not just another meme token; it's a new Ethereum-based layer-2 blockchain project designed for memecoins. Its goal is to improve transaction speeds, making them up to 100 times faster than Ethereum while lowering fees.

Additionally, it offers tools like a decentralized exchange (DEX), an instant bridge to Ethereum, and advanced analytics for tracking transactions. These features make it appealing to investors.

The project has captured the attention of deep-pocket investors. Etherscan data shows that one large investor bought 21.75 ETH worth of PEPU, valued at approximately $51,400.

In addition, the project has a double staking" application available during the presale, making it even more appealing for stakers. According to its site, over 1.2 billion tokens have already been locked in.

As proof of its credibility and security, PEPU has passed audits by Coinsult and SolidProof.

With Ethereum constantly struggling with rising gas fees, Pepe Unchained could be a breath of fresh air and a viable Ether alternative.

Pepe Unchained is still in presale, and each PEPU coin trades at $0.00993, offering an attractive entry point before it launches. To buy $PEPU, Visit its official presale site.

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