ETH blob fees surge as scalability concerns grow
ETH blob fees surge as scalability concerns grow
Recent developments have added layers of complexity to Ethereum's situation. A surge in airdrop claims for the new Ethereum layer-2 network, Scroll, pushed blob fees to a four-month high of $4.52. This spike not only highlights Ethereum's scalability challenges after the Dencun upgrade but also emphasizes the urgent need to tackle rising transaction costs, especially for Layer 2 networks.
Ethereum developers are working on a potential game-changer with Ethereum Improvement Proposal (EIP)-7742, which could shift the dynamics. Yet, as Ethereum co-founder Vitalik Buterin pointed out, the "blob count" is nearing full capacity. If action isn’t taken soon, Ethereum’s scalability could hit a roadblock.Technical analysisAs these changes unfold, Ethereum is currently dealing with selling pressure, which might lead to increased price fluctuations.
On October 20th, Ethereum broke out of a consolidating triangle pattern, climbing above the $2,700 mark and raising hopes for a continued rally. However, the altcoin has faced significant selling pressure this week, losing over 5% and effectively wiping out all gains from the previous weekend.
Currently, Ether is trading around $2,613, creeping closer to a crucial support level at $2,570.That $2,570 support isn’t just a number; it’s a pivotal point backed by the convergence of the 20 and 50 EMA, creating a golden cross. This technical indicator could attract buyers looking to take advantage of a potential rebound.
However, a drop below this support level would likely send Ether closer to the $2,500 mark.Such a move would probably leave the altcoin stuck in a broader three-month consolidation pattern.
With the new EIP on the horizon, if it successfully addresses scalability issues, Ethereum might regain its momentum, possibly leading to a more stable and bullish market sentimentOn-chain data indicates easing selling pressure. Ethereum must clear the critical $2,770 resistance to maintain bullish momentum
Ethereum accumulation addresses have increased by over 11.5 million ETH. This is a strong vote of confidence by investors in Ethereum’s long-term potential
