Ethereum Sees 110% Surge in New Holder Count Following Fusaka Upgrade

Ethereum has seen a significant surge in new wallet adoption following the December 3 Fusaka upgrade. Network data shows a 110% increase in new addresses over the past three weeks, signaling growing user interest. The rise in activity coincided with seasonal factors and the implementation of network upgrades aimed at improving scalability and reducing Layer 2 costs.

The Fusaka upgrade is part of Ethereum's broader plan to scale through more efficient Layer 2 solutions. Key changes, including PeerDAS, allow for more efficient data validation, improving the underlying architecture while keeping the base layer lighter for everyday users. These changes aim to reduce transaction costs and increase the network's capacity to handle higher volumes.

Ethereum's price has shown signs of strength but remains in a tight trading range. The cryptocurrency is currently near $3,141, approaching the upper boundary of a descending wedge pattern. According to recent technical analysis, a breakout above $3,131 could shift momentum and attract fresh buyers.

What Drives the Surge in New Holders

The 110% surge in new Ethereum addresses reflects a combination of factors. Seasonal trends, such as holiday-driven activity and end-of-year positioning, have contributed to heightened network engagement. Additionally, the structural improvements from the Fusaka upgrade have made Ethereum more attractive for developers and users seeking lower transaction costs.

Network growth is also being supported by increased whale activity. Data shows that large Ethereum holders are accumulating positions, taking advantage of lower prices to build their holdings. This behavior could signal renewed confidence in Ethereum's long-term value proposition.

Why Mid-Term Investors Matter

Mid-term investors are playing a key role in Ethereum's price dynamics. HODL Waves data indicates that wallets holding ETH for three to six months are showing increased strength. These investors, who largely accumulated ETH between July and October 2025, are currently in profit or break-even positions. This forced holding behavior could provide temporary support for Ethereum's price. If these investors choose to sell, it could trigger distribution and limit upside potential. However, if the price remains stable, it may reduce selling pressure and reinforce current price levels.

What Analysts Are Watching

Analysts are closely monitoring Ethereum's ability to sustain buying pressure. The cryptocurrency needs strong institutional demand to break out of its current range. ETH spot ETFs ended 2025 with net outflows of $72 million, indicating cautious sentiment among institutional investors.

Tom Lee's Bitmine has staked over $1.2 billion in ETH, a move that could signal bullish expectations for the coming months. If this optimism translates into broader market participation, Ethereum could reclaim $3,131 and move toward higher levels. The immediate downside risk lies below $2,902. A drop below this level could invalidate the bullish thesis and trigger a deeper correction. The market is currently waiting for a clear directional signal to determine Ethereum's next move.

Ethereum's price outlook remains tied to both technical and macroeconomic factors. While the Fusaka upgrade has improved the network's infrastructure, the broader market will need to show sustained demand for the price to break out of its range. Analysts will be watching for renewed whale activity and macroeconomic signals to assess the likelihood of a sustained rally.

The coming weeks will be crucial for Ethereum. If the network can maintain its growth trajectory and attract fresh capital, it could set the stage for a meaningful price increase. However, without strong institutional backing or a shift in investor sentiment, Ethereum may remain in consolidation mode for the foreseeable future.