Ethereum developers have resolved an issue on the Sepolia testnet, restoring normal operations after a temporary halt in transaction processing. This fix comes as analysts predict a potential price surge for Ethereum price, with targets reaching up to $4,000.
Ethereum Developers Fix Sepolia Testnet Issue
Ethereum’s Pectra upgrade encountered a technical issue on the Sepolia testnet, causing transactions to stop for several hours. Tim Beiko, Ethereum Foundation Protocol Support Lead, stated that the problem stemmed from Sepolia’s custom deposit contract, which differs from Ethereum’s mainnet.
Execution layer clients struggled to process transactions due to how Sepolia’s contract emitted data. “Some execution clients choked on it, txs stopped getting included,” CoinDCX executive Rohit Jain said on X. Developers quickly identified the issue and coordinated a fix, allowing validators to upgrade their nodes.
Following the deployment of the fix, Sepolia resumed normal operations, though some blockchain explorers and infrastructure providers may still require updates. The incident follows a previous issue on the Holesky testnet, where a misconfiguration led to a chain split in February. Ethereum developers remain focused on ensuring that these testnet issues do not occur when the Pectra upgrade is deployed on the mainnet.
Analysts Expect Ethereum Price to Rebound Toward $4,000
Market analysts are optimistic about Ethereum’s price recovery, with some expecting a rally toward the $3,000–$4,000 range. Crypto analyst Ali Charts noted that Ethereum price is testing the lower boundary of a parallel channel. A successful reclaim of the $2,350 level could push prices higher.
Concurrently, another analyst Ted pointed out that Ethereum has two major CME gaps to fill, one around $2,600 and another above $3,000.
Since early 2024, Ethereum has consistently filled CME gaps, and analysts believe this trend will continue. Some traders anticipate a short squeeze, which could drive Ethereum’s price upward in the short term.
Ethereum Investors Adjust Holdings Amid Market Volatility
Recent market fluctuations have led investors to actively manage their Ethereum holdings. Data from Glassnode shows that after Ethereum rallied to $2,500, the ETH price dropped to $2,050, a level last seen in November 2023. Investors with a cost basis of $3,500 reduced their exposure throughout February but later re-entered the market.
On March 1, approximately 500,000 ETH was accumulated at around $2,200 and then redistributed when the price reached $2,500. Additionally, about 800,000 ETH was gathered near $2,800, establishing a key resistance level for any potential price recovery.
Despite this resistance, Ethereum continues to attract institutional interest, with Nasdaq-listed BioNexus Gene Lab announcing ETH as its primary treasury asset. The company also released an Ethereum Strategy Whitepaper, emphasizing Ethereum’s staking rewards, financial stability, and scalability.
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