The Ethereum Foundation announced the shutdown of its Holesky testnet and the launch of a new network called Hoodi. This decision, due to technical issues in Holesky, could affect Ethereum's future.
Reasons for Holesky Shutdown
The Ethereum Foundation (EF) explained that Holesky suffered from significant issues related to the validator client configuration, leading to 'extensive inactivity leaks'. Despite developers managing to restore network functionality, the exit queue remains congested, hindering efficient staking operations testing. As a result, the decision was made to launch a new testnet named Hoodi.
Impact on Ethereum Price
Following the announcement of Holesky's shutdown, Ethereum prices temporarily surged above $2,000, surprising the market. However, there is skepticism about the sustainability of this increase. Crypto analyst Jelle noted that Ethereum bounced 'where it matters' at the $2,000 support level, possibly indicating a shift in investor sentiment. Nevertheless, mixed opinions persist.
Analysts' Opinions on Ethereum's Future
Some analysts believe Ethereum is escaping a 'bear trap'. CryptoGoos pointed out that the current price action resembles patterns seen before major trend reversals. Meanwhile, others remain cautious, noting that the Relative Strength Index (RSI) recently entered the overbought zone, which could signal a correction. Trader Ted argues that Ethereum is exiting its accumulation phase, reinforcing bullish sentiment.
Despite the uncertainty, Ethereum remains at a critical juncture. Traders are watching closely to see if the latest breakout holds, or if another pullback is on the horizon.
