Ethereum Poised to Launch the Kiln Testnet as it Prepares for PoS Transition

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Ethereum
Ethereum Poised to Launch the Kiln Testnet as it Prepares for PoS Transition

Ethereum has taken yet another step towards the proof-of-stake mechanism transition. Marius van der Wijden, an ETH developer, announced the launch of the Kiln testnet, the final testnet before the PoS transition. Developers will combine testnets like Ropsten, Rinkeby, and Goerli once this test is completed, says the developer.

10 Million ETH now Locked in the Deposit Contract

Ethereum (ETH) community enthusiasts celebrated a fantastic milestone in its Proof-of-Stake deposit contract yesterday. With over 10 million Ether (ETH) on its balance, the first deposit contract of Ethereum (ETH) is now live. The USD-denominated value of the contract, therefore, eclipses $26 billion.

Consequently, this contract owns most of the second cryptocurrency’s entire circulating supply. Nevertheless, some automated tracking systems (for instance, Beaconscan) show that this milestone is yet to come. The Ethereum 2.0 deposit contract was released on November 23, 2020, as the cornerstone of its ecosystem.

ETH’s developers also appear to have accelerated the testing of the new PoS system once the account had reached the 10 million token threshold.

Ethereum 2.0 Release Date

Initially scheduled for a 2019 release, Ethereum 2.0’s first phase became live on December 1, 2020. But, with two phases remaining, the entire deployment is not expected until later in 2023.

As part of the upgrade, the mainnet will merge with the beacon chain of Ethereum 2.0 to enable full staking. Following that, Ethereum shard chains will appear in 2023, boosting the blockchain’s capacity.

The Merge is expected to launch in Q2 2022, in line with the developers’ plans for the EIP-4345 Difficulty Bomb Delay. However, the entire launch of Eth2 is still susceptible to modification, especially given the previous setbacks. Despite these delays, the upgrades may occur sooner than planned.

Before this 2.0 upgrade, Ethereum had another update on August 5, 2021, with the London hard fork. This update incorporated EIP-1559, which modified Ethereum’s transaction fee model and kicked off Ethereum ETH burning.

Ethereum Price Turns Red

From far above $2,700, Ethereum began a new drop. ETH fell below the $2,650 and $2,600 support levels, entering the red zone.

A close below the $2,600 level was also recorded, as did a closing below the 100 hourly simple moving average. The price of ether has dropped to as low as $2,525 and is presently consolidating losses. On the upside, there is immediate resistance at $2,585. It is close to the 23.6 percent Fib retracement level of the latest drop from the $2,775 swing high to the $2,525 low.

The first significant resistance is near $2,620 and the 100 hourly simple moving average. On the hourly chart of ETH/USD, a strong negative trend line is forming with resistance near $2,600.

The next significant major resistance is positioned at $2,650. It is close to the latest drop’s 50% Fib retracement level from the $2,775 swing high to the $2,525 low. Closing over the $2,650 resistance level might signal the start of a continuous rise. In the scenario above, the price may increase to the $2,750 level, where the bears may establish a stand in the short term.

More ETH Losses?

If ethereum does not begin a new upward trend over $2,620, it may continue to fall. On the downside, the $2,525 level provides early support.

The next significant support is around $2,500. Closing below the $2,525 and $2,500 support levels may cause the price to fall. In the scenario above, the price might rise to $2,445. More advances may pave the way towards the $2320 or $2,250 level.