Fusaka Upgrade Reignites Confidence in Ethereum, Analysts Eye $3,500 Target
Overview
Ethereum (ETH) is back in the spotlight following the activation of its Fusaka upgrade, leading to a price recovery above the $3,200 mark. This upgrade, combined with increased on-chain activity, is generating renewed interest among traders after a period of uncertainty in the broader crypto market.
What Happened
The Fusaka upgrade, Ethereum’s second major network update of 2025, has officially gone live at block height 18,200,000. A key feature of this upgrade is PeerDAS, a data availability sampling system that allows nodes to store only portions of blob data rather than the entire payload. This enhancement is expected to significantly increase blob throughput, alleviating congestion and enabling layer-2 networks to process more transactions on Ethereum’s base layer.
In conjunction with PeerDAS, the Fusaka upgrade includes several Ethereum Improvement Proposals aimed at optimizing gas limits, transaction sizes, cryptographic support, and block configuration. These changes are designed to enhance the network’s efficiency while maintaining manageable validator requirements.
Market data indicates that Ethereum’s price has seen a rise of approximately 4-5% over the last 24 hours, outperforming many other large-cap cryptocurrencies. The accumulation of ETH by larger holders has noticeably increased, despite the prevailing sentiment indicators still reflecting a state of “Fear.” Analysts are observing resistance levels between $3,300 and $3,500, while some on-chain data suggests that “shark” wallets, which hold between 1,000 and 10,000 ETH, have been actively buying during price dips.
Impact on the Crypto Market
- The Fusaka upgrade revitalizes discussions around Ethereum’s long-term scaling roadmap.
- Increased accumulation by larger holders could signal growing confidence in ETH.
- Rising institutional interest, including notable additions to treasuries and inflows into U.S. spot Ethereum ETFs, may bolster market stability.
- Technical indicators are mixed, with some projecting potential price movements towards $3,537, but the overall market sentiment remains cautious.
- The upgrade may influence trading strategies, as traders reassess support and resistance levels following the recent price action.
Updated: 12/4/2025, 10:22:13 PM
