IMPORTANT POINTS:
- Thanks to the agreement on the debt ceiling, Ethereum rose this Monday and broke again the line of 1,900 USD.
- The bears are trying to defend the resistance at the moment, while the price of ETH fluctuates between USD 1,870 and USD 1,910.
- According to Cryptoquant data, the Ethereum balance on centralized exchanges continues to fall, which would be a bullish sign.
In the last week, Ethereum accumulates an increase of more than 4% and managed to break the hard resistance of USD 1,900. However, the bears are struggling to hold that resistance, so the price is now at $1,890.
This sudden price increase was due to macroeconomic conditions, after the Democrats, with President Joe Biden, reached an agreement with the Republicans to extend the debt limit.
In parallel, data from Cryptoquant indicated that the balance of Ethereum on centralized exchanges continues to fall, meaning investors and traders are more likely to hold their positions and decide not to sell anytime soon.
The fundamentals of Ethereum
On the other hand, a new upgrade in Ethereum is expected by the end of 2023 called Cancun-Deneb (Dencub), which aims to improve various aspects of the blockchain, such as scalability and security.
The update will also focus on the introduction of Danksharding, a technique for increasing on-chain data availability. This will cause Layer 2 backlog technology to be more efficient and optimized.