- The Ethereum Foundation has stated that the Holesky testnet will be discontinued starting in September.
- The new Hoodi testnet, which was launched on Monday, will take the place of Holesky.
- ETH has the potential to regain the $2,200 significant level, but it anticipates a crucial challenge around $2,070.
On Wednesday, Ethereum (ETH) traded above $2,020 following news that the Ethereum Foundation would cease the use of the Holesky testnet on September 30.
Ethereum Foundation plans to retire Holesky testnet, Hoodi to be the new alternative
In a recent blog update, the Ethereum Foundation announced its decision to phase out the Holesky testnet on September 30 due to “significant inactivity issues as part of the recovery process.” The newly introduced Hoodi testnet, which became operational on Monday, will replace Holesky.
Testnets are crucial environments where developers can experiment with code modifications or technical improvements before they are implemented on the main network. Initially intended for validators and staking providers to test new features, Hoodi will now fulfill that role.
Holesky faced complications while testing the Pectra upgrade on February 24, which stemmed from a configuration error in the validator clients that hindered transaction finalization. Despite several recovery attempts, the network eventually achieved finality last week; however, problems with its recovery protocol led to a congested validator exit queue.
“Although the Holesky network has now finalized, the exited validators will require around one year to be completely removed from the validator set,” the announcement detailed. “While stakers can experiment with deposits, consolidations, and other Pectra features, the congestion in the exit queue makes it impractical for Holesky to be used for comprehensive validator lifecycle testing in a reasonable timeframe,” they remarked.
Developers aim to launch Pectra on Hoodi on March 26, followed by its deployment on the main network 30 days later, assuming a smooth upgrade process.
“Moving ahead, staking operators and infrastructure suppliers should utilize Hoodi for validator assessments,” the announcement emphasized.
Pectra will introduce new features to Ethereum, such as enhanced staking limits, account recovery capabilities, sponsored transactions, and the ability to pay gas fees using other ERC-20 tokens in addition to ETH.
Ethereum Price Outlook: ETH targets $2,200 but encounters resistance at $2,070
In the last 24 hours, Ethereum saw $83.17 million in futures liquidations, according to Coinglass data, with long positions accounting for $66.27 million and short positions for $16.90 million.
ETH climbed above a downward trendline resistance dating back to February 25 and is now striving to reclaim the $2,070 mark. This movement follows a ten-day consolidation phase where ETH struggled to break above the psychological $2,000 threshold.
ETH/USDT daily chart
If ETH manages to maintain the descending trendline as support, it may ascend beyond $2,070 and confront the resistance level at $2,200. Conversely, if it faces a strong rejection at $2,070, ETH could potentially drop towards support at $1,818.
The Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) lines are showing upward trends, yet remain beneath their neutral levels, indicating a reduction in bearish momentum.
A daily close below $1,818 would nullify this outlook and could push ETH towards the support level at $1,500.
Ethereum FAQs
Ethereum is an open-source, decentralized blockchain that features smart contract capabilities. Its native digital currency, Ether (ETH), ranks as the second-largest cryptocurrency and leading altcoin by market capitalization. The Ethereum network supports the development of various crypto solutions, including decentralized finance (DeFi), GameFi, non-fungible tokens (NFTs), and decentralized autonomous organizations (DAOs).
Ethereum is a public decentralized blockchain platform where developers can create and launch applications that operate without the oversight of a central authority. The network employs the Solidity programming language and the Ethereum Virtual Machine to facilitate the development and deployment of applications incorporating smart contracts.
Smart contracts are publicly verifiable codes that automate agreements among parties. Essentially, these codes execute prescribed actions automatically when specific conditions are met.
Staking involves earning yields on inactive crypto assets by temporarily locking them into a blockchain protocol to enhance its security. Ethereum transitioned from a Proof-of-Work (PoW) to a Proof-of-Stake (PoS) consensus mechanism on September 15, 2022, in a significant event known as “The Merge.” This transition was part of Ethereum’s strategy to achieve enhanced scalability, decentralization, and security while maintaining sustainability. Unlike PoW, which demands costly hardware, PoS lowers entry barriers for validators by relying on crypto tokens as the essential basis of its consensus approach.
Gas serves as the unit of measurement for transaction fees that users incur when performing transactions on the Ethereum network. During times of high network congestion, gas rates can rise significantly, leading validators to prioritize transactions based on the fees attached.