Yet another approach is ISNULL().
UPDATE [DATABASE].[dbo].[TABLE_NAME]
SET
[ABC] = ISNULL(@ABC, [ABC]),
[ABCD] = ISNULL(@ABCD, [ABCD])
The difference between ISNULL and COALESCE is the return type. COALESCE can also take more than 2 arguments, and use the first that is not null. I.e.
select COALESCE(null, null, 1, 'two') --returns 1
select COALESCE(null, null, null, 'two') --returns 'two'