Can the Fusaka Upgrade Renew Ethereum’s Momentum After Recent Price Hit?
Ethereum fell greater than 2% inside 24 hours, sliding beneath $3,000 after dropping its $2,900 assist degree. The drop triggered widespread liquidations, with round $500 million in lengthy positions worn out. Data exhibits that $79 million of the $106 million in ETH-focused contracts liquidated have been lengthy bets.
Trading exercise spiked sharply throughout the decline, with day by day quantity rising 200% to $33.2 billion. The broader crypto market additionally contracted, falling practically 1.2% and erasing an estimated $1100 billion in worth inside hours. Bitcoin, SOL, XRP, and DOGE adopted comparable downward strikes.
Despite the volatility, some corporations collected ETH throughout the downturn. BitMine Immersion Technologies elevated its holdings by 96,798 ETH, diverging from the pattern of corporations decreasing danger publicity.
Fusaka Upgrade Goes Live, Aiming to Boost Scalability
On December 3, Ethereum is ready to activate its Fusaka upgrade, the community’s second main 2025 replace. The improve aligns execution- and consensus-layer modifications, introducing options that goal to enhance Layer 2 and scale back prices.
A key element is PeerDAS, a data-sampling mechanism designed to scale back the bandwidth validators must confirm Layer 2 information. This system goals to chop validator bandwidth necessities by as much as 85% and broaden blob information capability, doubtlessly decreasing Layer 2 transaction charges by 40–60%.
Fusaka additionally raises Ethereum’s block fuel restrict to 60 million, enabling extra transactions per block, and introduces updates to the Ethereum Virtual Machine that streamline good contract execution. These mixed modifications are anticipated to boost the community’s transaction capability.
Industry curiosity had been rising forward of the improve. Major monetary gamers, together with Amundi and Fidelity, not too long ago introduced strikes into tokenized merchandise constructed on Ethereum, reflecting broader institutional exercise throughout the community.
Can Ethereum (ETH) Recover From Oversold Levels?
Ethereum (ETH) final traded at round $2,807, with technical indicators indicating continued bearish momentum. The MACD stays in adverse territory, whereas the Relative Strength Index sits at 32, signaling oversold circumstances.
Key assist ranges are at $2,700 and $2,500. A failure to carry these zones could deepen the downtrend, whereas a rebound may push ETH again towards $2,900–$3,000. Open Interest rose 4.3% after the decline, suggesting merchants are reopening positions and getting ready for greater volatility.
Whether the Fusaka improve can shift market sentiment stays unsure, however its long-term scaling impression could play a task in Ethereum’s broader restoration.
Cover picture from ChatGPT, ETHUSD chart from Tradingview
