Ethereum News Today: Ethereum's On-Chain Surge Clashes with Stagnant Price Ahead of Key Upgrade

Ethereum's market structure appears to be under strain as network activity reaches a five-month peak, driven by surging decentralized finance (DeFi) interactions, stablecoin transfers, and smart contract deployments, according to a Coinotag report. Daily gas usage hit record levels, with Ethereum processing over 550,000 active addresses and burning approximately 48 ETH daily from DeFi applications, the report adds. This surge in on-chain engagement contrasts with mixed price action, as ETH struggles to break above the $4,250 resistance level despite institutional accumulation and corporate treasury deployments, as noted in a Crypto.news report.

Corporate entities are increasingly positioning Ethereum as a core asset, with BitMine Immersion Technologies leading the charge. The Crypto.news piece said the firm added 27,316 ETH ($113 million) to its treasury this week, bringing its total holdings to 3.31 million ETH—2.8% of the circulating supply—valued at $13.3 billion. Chairman Tom Lee attributed the move to improving macroeconomic conditions, including progress in U.S.-China trade talks and a rebound in equity markets. BitMine's strategy mirrors broader institutional trends, with GameSquare and Reliance Global Group also deploying Ethereum and Solana to corporate treasuries, per Investing.com data.

However, Ethereum's price trajectory remains uncertain. While on-chain metrics suggest robust network health, short-term traders face conflicting signals. ETF outflows have weighed on sentiment, with over $81 million in redemptions from Ether-based funds this week, according to a CryptoDaily report. Meanwhile, long-term bulls point to Ethereum's deflationary supply model and growing staking activity as tailwinds. Analysts like Ted Pillows note that a breakout above $4,250 could reignite bullish momentum, though technical fatigue and low trading volumes hint at near-term volatility, per a Crypto.news analysis.

Whale activity further complicates the outlook. A dormant Ethereum ICO whale recently reactivated after eight years, depositing 1,500 ETH ($6 million) into Kraken—a 12,971x return on its original $6,200 investment, according to a Yahoo Finance report. Conversely, profit-taking pressures are evident, with entities like ETHZilla selling $40 million in ETH to fund share repurchases. This divergence underscores a market split between institutional accumulation and speculative profit-taking, a dynamic that could intensify as the Fusaka upgrade approaches.

Scheduled for December 3, the Fusaka upgrade aims to enhance Ethereum's scalability through proposals like Peer Data Availability Sampling (PeerDAS), which reduces data processing burdens for validators, as reported by Coinpaper. Developers also plan to increase gas limits and support parallel smart contract execution, addressing Ethereum's long-standing "blockchain trilemma" of balancing scalability, security, and decentralization, according to Yahoo Finance's coverage. The upgrade follows a successful testnet deployment and is seen as critical for Ethereum's competitiveness against faster Layer-1 rivals like Solana, per a Coinfomania update.

Despite these advancements, Ethereum faces headwinds. Bitcoin's recent volatility and macroeconomic uncertainty—exemplified by the Trump-Xi summit and Federal Reserve policy—have created a risk-off environment, a trend visible in Ethereum market data. Additionally, regulatory scrutiny of stablecoins and DeFi protocols could dampen growth if not addressed, the Coinotag report warned. For now, Ethereum's price hinges on whether institutional demand and on-chain momentum can outweigh short-term headwinds.