Ethereum (ETH) is currently struggling in the crypto market. The world’s second top coin is now trading around $3,838 after dropping below the key $3,900 support level.
The fall comes as investors pull massive capital out of spot Ethereum Exchange-Traded Funds (ETFs) as overall market confidence remains low.
Crypto Market Sees Broad Pullback
According to on-chain data, the entire crypto market fell by about 1% in the last 24 hours and more than 6% over the past month. Analysts say this decline is mainly due to mixed global economic conditions and large withdrawals from crypto ETFs.
The flagship crypto Bitcoin (BTC) saw about $519 million in ETF outflows but managed to recover slightly, now trading near $109,000. Ethereum investors, however, remain cautious yet hopeful. Some even expect it to climb toward the $5,000 mark in the coming months.
Ethereum’s Fusaka Upgrade Goes Live on Testnet
Ethereum’s Fusaka upgrade has already gone live on the Hoodi testnet. Developers are now testing the new features before launching them on the main network.
As revealed during a recent developers call, the upcoming Fusaka upgrade is set to be released on December 3. This upgrade is designed to bring major technical improvements that could make Ethereum faster and more efficient.
This includes EIP-7594, a new feature that lets validators access parts of “blob data” for better communication with Layer 2 networks. The gas limit will also rise from 30 million to 150 million, allowing the network to process more transactions at once. This comes as the network’s gas fee recently recorded all-time low.
Developers see Fusaka as a big milestone in Ethereum’s “Surge” phase, a key part of its long-term roadmap that focuses on scaling. It also lays the foundation for full danksharding, a future upgrade expected to make Ethereum even faster and cheaper to use.
Analysts believe this could attract more users and possibly increase ETF inflows again, and boost the digital asset market value.
Ethereum Eyes Breakout as Bulls Target $4,000 Level
Ethereum’s price chart shows patterns that look similar to earlier moments before strong rallies. Some analysts believe that if buying interest picks up again, ETH could see a solid rebound. Right now, Ethereum faces strong resistance around $4,000.
If the price manages to rise above $4,200, it could retest $4,300 and possibly climb toward $5,000 over time. However, if selling continues, ETH might drop toward $3,700, or even $3,500 in a deeper correction.
Technical indicators show mixed results. The Relative Strength Index (RSI) is at 42, which means the market is neutral to slightly bearish. The MACD also supports this cautious view, showing that downward pressure is still present.
Nevertheless, industry leaders remain bullish, predicting Ethereum could reach $10,000 by year end.