The cryptocurrency market is experiencing a downturn, and Ethereum (ETH), the world's second-largest cryptocurrency, has not been spared. For several weeks, ETH has been trading below $3,600, influenced by macroeconomic factors and regulatory uncertainties. Despite this, a significant trend is re-emerging: major players are actively engaged. While smaller holders are selling, large investors, often referred to as "whales," are increasing their holdings. The upcoming Fusaka update, scheduled for December, appears to be a key catalyst for this activity.
In brief
- •Wallets holding 10,000 ETH or more have recently increased their holdings by 52%.
- •Small holders are reducing their exposure while whales accumulate at lower prices.
- •The Fusaka update is expected to enhance scalability and reduce network fees.
- •Macroeconomic stability suggests a potential local bottom for Ethereum around $3,200.
Discreet Accumulation by Large Wallets Signals Potential ETH Comeback
Since late April, addresses that hold between 10,000 and 100,000 ETH have collectively acquired nearly 7.6 million additional tokens, marking a 52% increase in their balances. These "whales," who are often indicators of significant market shifts, appear to be anticipating a market reversal.
ShayanMarkets, an analyst at CryptoQuant, corroborates this trend, stating:
If this behavior persists and the $3-$3.4K region holds as structural support, Ethereum may be entering a low-volatility accumulation zone, setting up for a potential final bullish impulse toward the upper range of $4.5K–$4.8K.
Concurrently, retail wallets, those holding between 100 and 1,000 ETH, have decreased their positions by 16%. This quiet transfer of assets to larger players is reminiscent of the conclusion of bear market cycles. While other cryptocurrencies like Bitcoin are exhibiting similar patterns, Ethereum is drawing particular attention. Its relative stability against Bitcoin, coupled with a resurgence in transaction volume since September, reinforces the notion of a solid support level around $3,200.
Fusaka Update Poised to Reshape the Ethereum Ecosystem
On December 3, Ethereum is scheduled to activate the Fusaka update. This significant technical upgrade introduces several improvements to the Ethereum network, most notably the "blob lanes." These dedicated data lanes will be accessible to layer 2 scaling solutions, aiming to accelerate transaction speeds, reduce fees, and alleviate congestion on the main blockchain.
However, this enhancement in scalability may have a secondary effect: fewer transaction fees could lead to a reduction in the amount of ETH burned. If layer 2 solutions incur lower costs to utilize Ethereum, the network's deflationary mechanism might be impacted. Shawn Young, an analyst at MEXC, commented on the update:
This is a significant update because what’s next for Ethereum adoption is coming from real-world applications and DeFi protocols, all of which would depend on cheaper, faster transactions
It remains to be seen whether this technical evolution will compensate for any potential decrease in revenue for validators. Nevertheless, the behavior of whales suggests a belief in its positive impact.
Navigating Macroeconomics, Regulation, and Token Hunting
The cryptocurrency industry continues to be influenced by several external factors. On one hand, the global macroeconomic landscape appears to be stabilizing. On the other, discussions surrounding a more defined legal framework in the United States are resurfacing, particularly with the potential end of the government shutdown.
Lai Yuen, an analyst at Fisher8 Capital, observed:
Whale accumulation makes sense, and we see the same for Bitcoin as well, with new participants coming in to absorb sell pressure from OGs that believe in a four-year cycle. If macro conditions continue to hold up well…chances of this becoming a local bottom are high for Ethereum at $3,200 and Bitcoin at $98,000.
The increasing interest in asset tokenization, driven by major financial institutions, could further accelerate Ethereum's adoption. This trend is gaining momentum, and the active participation of large holders underscores its significance.
Key Markers in the Ethereum Ecosystem
- •The ETH price at the time of writing: $3,549.30;
- •Whale accumulation: +52% since April;
- •Decrease in retail wallets: -16%;
- •Date of the Fusaka update: December 3, 2025;
- •Current observed support level: between $3,000 and $3,400.
Recently, another positive development has emerged: transaction fees on Ethereum have dropped to $0.067$ gwei. This significant reduction promises a smoother and more cost-effective experience for all users, further enhancing the network's attractiveness. This could indeed mark the beginning of Ethereum's quiet but impactful revolution.