Ethereum Fusaka Upgrade Goes Live—Here’s Why a Breakout Toward $3,500 is Imminent

The cryptocurrency markets are showing signs of recovery following a recent price crash attributed to significant liquidations and a decline in buying pressure. Despite bearish market sentiment, the Ethereum price has remained resilient, hovering around the critical psychological barrier of $3000. This stability has bolstered market confidence. Concurrently, the highly anticipated Fusaka upgrade has been successfully deployed on the mainnet, a development expected to trigger a strong upward trend and potentially push the price beyond $4000.

Ethereum's Fusaka Upgrade Deploys on Mainnet

Ethereum is committed to enhancing its blockchain's scalability, security, and reliability. The recent Fusaka upgrade, now live on the Ethereum Mainnet, is designed to improve state management efficiency and reduce network strain during periods of high demand. This upgrade has already contributed to a quiet but noticeable increase in developer and user activity.

While not as prominent as other major roadmap milestones, the Fusaka upgrade offers two significant benefits at a time when Ethereum's on-chain metrics are already demonstrating strength:

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  More Efficient Transactions: Users can expect fewer delays during peak network activity, which encourages sustained engagement with the blockchain.

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  Enhanced Support for Scaling Solutions: Developers working on Layer 2 rollups and high-frequency applications will benefit from a more streamlined environment, fostering an increase in new address creation and smart contract deployments.

For investors focused on long-term fundamentals, the Fusaka update reinforces the ongoing accumulation narrative. Large holders often increase their positions in anticipation of upgrades that promise to improve user experience and reduce network friction, a trend that appears to be unfolding currently.

Significant ETH Accumulation by Large Holders

Data from Santiment indicates that between November 18 and December 2, wallets holding between 1,000 and 10,000 ETH acquired approximately 450,000 ETH. This accumulation marks a significant shift from the period of October 5-10, when this same group divested 1.3 million ETH, contributing to a corrective phase in ETH's price movement.

Historically, this cohort of large holders has a track record of accumulating assets ahead of medium-term trend reversals. Their renewed confidence suggests that these substantial holders may be positioning themselves for stronger fundamentals as December and early 2025 approach.

ETH Price Analysis: Potential for a Move to $3,500

The ETH price has successfully reclaimed the $3,215 level and is now advancing towards the critical resistance zone spanning $3,350 to $3,450. A decisive break above this range would signify a structural shift in the current trend and open the possibility of reaching $3,500, a price level closely monitored by traders.

Technical indicators suggest a bullish outlook. The ETH price has reached the upper bands of the Bollinger Bands, displaying bullish divergence. This pattern historically indicates an expected price increase along the upper bands, similar to movements observed in May and July. Furthermore, the Chaikin Money Flow (CMF) indicator shows incremental growth, suggesting a significant influx of liquidity into the platform. These combined factors indicate that the ETH price may soon overcome the $3,500 barrier and target higher price levels.

Conclusion

Ethereum's improving on-chain activity, bolstered by substantial accumulation from large holders, accelerating network growth, and a more efficient network post-Fusaka upgrade, is establishing a strong foundation for upward price movement. With key resistance levels within reach, the ETH price appears to have the necessary structural support to challenge the $3,500 mark.