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Ethereum’s Cancun Upgrade is the next major update to the network that core developers have chosen to work on. Learn more about it in this article.

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Even after countless upgrades to the Ethereum blockchain, we’re only 

 in 2022, Ethereum’s post-Merge upgrade schedule is likely to follow its original road map, which 

, which allowed Ether stakers to finally withdraw their deposited ETH, we’re seeing Ethereum’s core developers resume their post-Merge road map now that the way forward has been paved.

Also known as the “Dencun” Upgrade (a portmanteau of “Deneb” and “Cancun”), the Ethereum blockchain’s Cancun Upgrade aims to improve the network’s overall scalability and security. In total, the upgrade comprises five Ethereum Improvement Proposals (

) that will supposedly increase data storage and lower costs. 

Curious as to how the team will set out to accomplish this? From 

, here’s all you need to know about the Ethereum Cancun Upgrade and how it might impact ETH prices once it’s fully implemented later this year.

Ethereum’s Cancun Upgrade is the next major step forward for the network that core developers have chosen to work on. Labeled the “Surge” portion of the 

’s road map, Cancun aims to improve the blockchain’s maximum number of transactions per second (

) without sacrificing concerns like security and ease of development for Layer 2 decentralized applications (

It's important to note that the Ethereum Cancun Upgrade isn’t merely a software update, but rather a significant milestone for Ethereum. In a nutshell, Cancun aims to improve the network's 

 and security, and to lower transaction fees — which could attract more users to the network. According to 

 of the Ethereum Foundation, October 2023 is a feasible goal for Cancun's activation, which will include the following EIPs:

Proto-Danksharding & Blob Carrying Transactions

As a new transaction format that’s introduced by 

, a binary large object (BLOB) refers to large data packets integrated into Ethereum’s network to boost overall transaction throughput. These “blobs” consist of additional information temporarily stored on the Ethereum consensus layer, which facilitates a more cost-effective and affordable solution for reducing overall gas fees.

Blob-carrying transactions essentially allow a transaction sender to attach a large chunk of data, akin to how large files are attached to emails prior to sending them. This ultimately frees up more space for transaction data on 

 protocols, which will make transactions more affordable in the long run as it reduces the fees for posting data to Ethereum.

What Is the Deneb Upgrade, and How Does It Differ From the Cancun Upgrade?

If you’re just getting started within the Ethereum ecosystem, you may be curious about the term "Dencun" being thrown around by some crypto enthusiasts. Essentially, this is a reference to the upcoming Ethereum network upgrade, which will involve updates to both the 

. The Cancun Upgrade specifically pertains to the update of the Ethereum execution layer, while the Deneb Upgrade focuses on the network’s consensus layer. 

These upgrades will be taking place simultaneously, so there's no need to worry about any potential delays in the execution of either one. It's worth noting that both updates are being implemented to improve the overall efficiency and security of the Ethereum network, which is exciting news for anyone involved in the Ethereum ecosystem. Whether you're a seasoned user or just starting out, this upgrade is definitely something to watch for.

 will be implemented primarily to provide data availability support for the highly awaited EIP-4844, known as Proto-Danksharding. That aside, Deneb will also include the following EIPs:

Why Is Everyone Talking About the Ethereum Cancun Upgrade?

Like The Merge, the Ethereum Cancun Upgrade represents yet another step in the right direction for the Ethereum Foundation and its core developers as they strive to complete the 

 portion of their road map. The execution of Cancun for the Ethereum blockchain marks the first significant step toward overall project progress, since Proto-Danksharding is a key EIP that must be executed to enhance transaction throughput. 

This has once again sparked interest in the long-term value of investing in Ethereum. It continues to become the most widely adopted smart contract platform to deliver on fulfilling the promises of its road map. With Cancun being imminent, interest is peaking in the potential upcoming volatility to come from the execution of this major network upgrade.

What Does the Ethereum Cancun Upgrade Aim to Achieve?

From scalability to better security, here are some of the most talked-about improvements to come with the Ethereum Cancun Upgrade.

The temporary storage and retrieval of off-chain data via Ethereum nodes will resolve the key issue of scalability for the Ethereum blockchain. Proto-Danksharding will significantly increase transaction throughput, which can improve the overall user experience as transactions are processed at a greater rate without fear of congestion or being bogged down by traffic demands. 

The introduction of Proto-Danksharding and related EIPs is expected to address the issue of high gas fees on the Ethereum network. By optimizing transaction processing and reducing the burden on network resources, the upgrade may lead to transaction costs as low as a fraction of a cent. This remarkable fee reduction would be particularly beneficial for investors who frequently engage with the Ethereum ecosystem and its related DApps. From 

, this could lead to even greater adoption of the Ethereum network in the future.

The Cancun Upgrade also incorporates various improvements and bug fixes, enhancing the overall security and stability of the Ethereum network. For ETH investors, this will mean a more robust ecosystem with reduced vulnerability to potential attacks or network disruptions. By satisfying a critical area of the 

, crypto enthusiasts and newcomers who invest based on a network’s security and stability may have more confidence in investing in ETH for the long haul.

The Impact of the Ethereum Cancun Upgrade on ETH Prices

Taking into account the Ethereum Foundation’s solid track record of executing network upgrades, the Ethereum Cancun Upgrade sounds like nothing but good news for 

 and long-term investors. This is because implementing the numerous EIPs will help strengthen Ethereum’s core fundamentals and facilitate mass adoption once interest builds again in crypto during a bull run.

Conversely, this might also be a case of “buy the rumor, sell the news,” whereby ETH traders and speculators may decide to sell off their ETH holdings or short-sell ETH once the Cancun Upgrade is completed. This is intended to take advantage of retail investors and traders buying up ETH on the basis of 

Keen to learn how you can profit from the near-term volatility caused by the Ethereum Cancun Upgrade? Read on as we cover our 

 takes on how ETH prices might move post-Cancun update.

Ways to Profit from the Ethereum Cancun Upgrade

Here are our thoughts on how to trade ETH in the event of pronounced Ether price volatility. All of our outlooks will be based on the ETH chart displayed below, and represent possible scenarios in which ETH prices could fluctuate.

Since breaking out of the lower end of its ascending channel, ETH has shown some signs of support at the $1,610 level as buyers step in to 

. On Aug 30, 2023, we saw a slight 5% rally after the U.S. Court of Appeals for the District of Columbia Circuit 

 Grayscale Investments and overturned the SEC’s rejection of the 

Spot ETF. However, this was short-lived, as ETH’s price declined to its support level of $1,610. With the Ethereum Cancun Upgrade right around the corner, we might see Ether hovering around this price range.

FOMO is a powerful driving factor in the crypto space — and this could certainly be the case with the essential Cancun network upgrade. Thanks to FOMO, traders might jump on the ETH bandwagon if the upgrade proceeds without a hitch. To take advantage of this FOMO-induced ETH rally, it might make sense to build a trading plan around a stop market leveraged long order and buy the 

 would want to see ETH prices retest the bottom of the ascending channel at around $1,900. If ETH can break through this price barrier, we might see its price surge toward the $2,400 to $2,500 range.

While the long-term prospects of the upcoming Ethereum Cancun Upgrade might sound bullish on a fundamental level, there are still a host of other factors that could cause ETH prices to decline in the short term. Some of these negative catalysts include:

Any negative crypto news might cause a breakthrough of Ether’s existing area of support and result in ETH prices heading toward $1,500. If you have a bearish outlook on Ethereum and ETH prices, it would be ideal to build a trading plan around a stop market leveraged short order by buying the leveraged Perpetual token pair 

If you're interested in trading Ethereum and making a profit off of the Ethereum Cancun Upgrade, then you might want to read our guide on how to get started with trading ETH. 

. From there, you can locate ETH3L pairs if you're bullish, or ETH3S pairs if you're bearish. 

Once you're in the trading interface, it's important to change your order type to 

. This type of market order can help you maximize short-term gains while limiting your maximum loss, thanks to the 

 in place. (For trading beginners, the stop-loss feature keeps your losses fixed, according to your risk tolerance, so you can trade with greater confidence.)

Before inputting your price levels, it's crucial to check for 

, which can be useful when placing your price levels. However, keep in mind that the strength of these levels can vary based on your personal risk appetite.

Assuming you’ve funded your account, you can proceed to input the fields present in your ETH3L or ETH3S leveraged token stop market order. Once you’ve inputted all the necessary information, submit the order to place your trades. With these tips in mind, you should be able to get started with trading ETH on Bybit and potentially profit from the Ethereum Cancun Upgrade.

: Calculated as (Entry − Exit before rebalancing)

: Calculated as (Exit − Entry + Volatility Decay + Fees)

Keen on reading more about strategies for trading with Spot and Derivative products on Bybit? Check out our guide on 

Other Ways to Profit from the Ethereum Cancun Upgrade With Bybit

Exploring other ways to profit from the Ethereum Cancun Upgrade? Look no further! Bybit is running a total of eight campaigns for you, with a total prize pool of 335,000 USDT to maximize your gains.

Learn to Earn From the 5,000 USDT Prize Pool

The first event will take place two weeks before the Cancun Upgrade, as users can show off their knowledge of the upgrade to earn a share of the 5,000 USDT prize pool!

Take part in the Learn to Earn campaign’s quiz, and get all the answers correct to be eligible for rewards. The first 600 new users to get all answers correct will receive 5 USDT each. 

If you’re an existing user, don’t worry. Simply be among the first 500 existing users to get all the answers correct, and receive 4 USDT.

The second event is known as the Cancun Supreme Scorer 2023. It will take place from Sep 25, 2023, 10AM UTC through Oct 13, 2023, 10AM UTC.

To take part in this event, you’ll need to follow the rules below:

If you'd like to boost your points, you can do so as follows:

The grand prize pool stands at 80,000 USDT, split as follows:

The Point Ranking Prize Pool is broken down as follows:

The Prediction Ranking Prize Pool is broken down as follows:

Stay tuned for the following six events, which provide you with even more opportunities to earn with Bybit! These will be held progressively from mid-October 2023. Check out 

Deposit and Earn from the 30,000 USDT Prize Pool — New Users Exclusive

The Deposit and Earn event is being held exclusively for new users. To participate, simply complete the following steps:

Once you’ve completed the above steps, you’ll receive 20 USDT. Please 

 that rewards will be distributed on a first-come, first-served basis.

Trade to Earn From the 60,000 USDT Prize Pool

Dive into the Trade to Earn event to unlock rewards worth 60,000 USDT! This event is only applicable to the following token pairs:

 Engage in Trading and Grab a Share of 50,000 USDT

To stake your claim in this reward pool, engage in trades involving any of the qualifying tokens. Ensure your Spot trading volume crosses the threshold of 100 USDT during the promotional phase. Remember, the more active you are, the heftier your rewards.

Participants can equally divide the 10,000 USDT reward by accomplishing the following during the event:

When setting up bots, users are restricted to investments in USDT only

The next Earn event allows users to unlock rewards worth 25,000 USDT.

 Secure High Returns with ARB & OP Staking

Perk 2: Mint stETH & Share in an ETH Reward

 during the promotional phase and you’ll not only qualify for up to 7% APR from ETH 2.0 Liquid Staking, but also get a shot at sharing 1 ETH. Ten fortunate participants will be chosen at random to equally divide this ETH reward.

Another event is Fiat: Deposit to Earn. Please 

 are accepted. Eligible platforms include: 

: This promotion is tailored specifically for newcomers to Bybit (those who have recently registered, and haven't yet made any deposits). Here's how to participate:

Futures Trading — Trade & Win 1 ETH and More

To participate in the Futures Trading event, simply follow the steps below:

Elevate your trading game and you could walk away with 1 ETH 

. The more you trade, the more Mystery Boxes await you!

Ethereum Cancun Upgrade: The Impact on ETH Prices

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