Tonight marks a pivotal moment for the Ethereum network as it prepares to activate its most significant technical upgrade of the year. The “Fusaka” hard fork, scheduled for 21:49 UTC, represents a fundamental infrastructure overhaul designed to enhance the blockchain’s capacity and efficiency. This event arrives as ETH prices show tentative recovery from recent lows, leaving investors to question whether the update will catalyze a sustained advance or become a classic profit-taking opportunity.
Institutional Accumulation Signals Confidence
Ahead of the upgrade, on-chain data reveals substantial accumulation by large-scale investors, commonly referred to as “whales.” Purchases exceeding $150 million across major exchanges like Kraken and Binance indicate that sophisticated capital is positioning for a successful transition. This institutional interest provides underlying support for the asset, which is currently trading near $3,050, despite remaining down approximately 22% for the month.
Notable moves include BitMine increasing its holdings by nearly 97,000 ETH. Furthermore, the growing trust of traditional finance is underscored by asset manager Amundi’s tokenization of a money market fund on the Ethereum network. This buying activity has helped stabilize the market following a sharp sell-off that briefly pushed prices below $2,650.
Technical Leap Forward with PeerDAS
The core of the Fusaka upgrade is the implementation of a technology called PeerDAS. This innovation allows network validators to verify data through sampling, eliminating the need to download entire, massive data sets. The anticipated result is an 85% reduction in bandwidth requirements. Concurrently, the network’s “Block Gas Limit” will see a substantial 67% increase.
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For users and developers, these changes translate to a more powerful and scalable network capable of handling higher transaction volumes and more complex smart contracts. Additionally, the update enables native integration of biometric security features, such as FaceID, for wallets—a critical development for broader user adoption.
Bullish Bets Face Technical Reality Check
Market sentiment, particularly in the derivatives sector, appears overwhelmingly optimistic. Options trading activity shows a heavy concentration of bets targeting a climb toward $6,500. This bullish outlook is echoed by analysts like Fundstrat’s Tom Lee, who projects a realistic price range of $7,000 to $9,000 by early 2026, contingent on a smooth upgrade rollout.
However, significant risk remains. Analysts warn that any technical hiccups during the implementation could trigger a swift reversal. Should the market treat the news as a cue to realize profits, ETH could face a retest of key support levels around $2,500. Consequently, Fusaka is more than a routine update; it serves as a critical test for Ethereum’s ambition to maintain its position as a leading global financial infrastructure. The coming hours will determine if the network’s performance can match the market’s elevated expectations.
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