Ethereum News Today: ETH's $3,800 Drop: Bearish Bets vs. December Upgrade Hopes

Ethereum (ETH) dipped below $3,800 on October 31 as bearish momentum intensified ahead of its highly anticipated Fusaka upgrade, scheduled for December 3. The upgrade, which includes 12 Ethereum Improvement Proposals (EIPs) aimed at enhancing scalability and security, will introduce PeerDAS (EIP-7594), enabling Layer 2 transaction validation through sampled blob data. Despite developer optimism, ETH faced rejection at the 100-day EMA, with bears eyeing $3,600 as critical support, the FXStreet piece added. The market's fragility was further underscored by $184.31 million in Ethereum ETF outflows over 48 hours, according to a Coinpedia report on ETF movements.

The selloff coincided with a surge in interest for alternative narratives, particularly in the meme coin sector. BNB Smart Chain's $BALZ, positioned as the "meme migration home," attracted attention with its presale campaign, drawing comparisons to past viral tokens like Dogecoin; analysts note that BALZ could see exponential growth if Binance CEO Changpeng Zhao ("CZ") endorses it, a pattern seen in prior meme cycles, according to the BALZ presale. Meanwhile, Ethereum's Fusaka upgrade is expected to boost blob capacity in two phases—December 9 and January 7—potentially revitalizing Layer 2 networks and stabilizing ETH's value proposition, the FXStreet article noted.

Bitcoin (BTC) also faced headwinds, slipping below $110,000 as macroeconomic pressures weighed on risk assets. However, corporate demand remained resilient, with Strive acquiring 72 BTC to bring its holdings to 5,958 BTC, according to a Bitcoin weekly forecast. The on-chain economy, meanwhile, showed signs of maturation, generating $9.7 billion in fees during the first half of 2025—a 41% increase year-over-year, per an on-chain economy report. This growth reflects a shift toward usage-driven economics, with DeFi protocols accounting for 63% of on-chain activity.

Venture capital firms continued to bet on crypto's long-term potential, with 83 blockchain startups securing $3.9 billion in October alone. Galaxy Ventures' Mike Giampapa dismissed recent deleveraging events as "short-term microstructure-driven," emphasizing that institutional confidence remains intact, the Sequoia and a16z report said. Polymarket, the decentralized prediction market, emerged as a top recipient, securing $2 billion in strategic funding from Intercontinental Exchange, the same Yahoo piece noted.

While Ethereum and Bitcoin grappled with near-term pressures, speculative assets like XRP and meme coins captured retail enthusiasm. XRP climbed 2% to $2.51, with bulls targeting $3 as resistance breaks, fueled by ETF-related optimism, according to a Benzinga report. The broader market's technical indicators, however, suggest caution: Ethereum's RSI and Stochastic Oscillator trended bearish below neutral levels, the FXStreet analysis observed, while Bitcoin's RSI hovered near 45, signaling lingering bearish momentum reported in the Bitcoin weekly forecast.