Ethereum (ETH) has regained momentum and surged past the $3,000 mark, anticipating the eagerly awaited Fusaka update. Over the past 24 hours, ETH gained 3%, buoyed by a rebound in the cryptocurrency market. This rise was further supported by Bitcoin surpassing the $90,000 threshold and recoveries among altcoins like Solana (SOL), Ripple (XRP), and Dogecoin (DOGE), which contributed to a positive market sentiment.
Fusaka Update to Enhance Ethereum’s Efficiency
Scheduled for activation on December 3rd, the Fusaka update is set to deliver significant performance improvements in both the execution and consensus layers of Ethereum. Developers have introduced a system called PeerDAS, which distributes data accessibility tasks randomly among node groups. This method aims to enhance the network’s data capacity by nearly eightfold while reducing rollup transmission costs.
The primary goal of this update is to lower transaction costs and promote the adoption of Layer-2 (L2) solutions. Experts believe that these improvements will accelerate Ethereum’s application in areas such as decentralized finance (DeFi), gaming, and the tokenization of real-world assets (RWAs). Meanwhile, market participants are approaching the update with caution. The recent price weakness signaled investors’ anticipation for technical confirmation.
ETF Inflows Boost the Rally with Eyes on $3,500 Target
As of November 26th, spot Ethereum ETFs attracted $60.82 million in inflows, marking four consecutive days of positive trends. In contrast, spot Bitcoin ETFs experienced inflows of $21.12 million, while Fidelity’s FBTC ETF saw outflows. XRP ETFs witnessed $21.81 million in inflows, whereas Solana ETFs recorded a net outflow of $8.1 million. These data indicate a growing interest from investors in Ethereum.
At the time of writing, the price of ETH is trading around $3.030. Analysts suggest that surpassing the $3.200 mark could pave the way for a new upward trajectory, potentially reaching $3.300 and $3.400. The $3.500 level is seen as a confirmation of a strong recovery in the long-term outlook. On the downside, if the price falls below $3.000, retesting the $2.900 or $2.700 regions could be possible. Technical indicators reveal a positive MACD crossover, and the balanced RSI at 64 suggests ongoing bullish momentum.