Ethereum News Today: Ethereum Price Slides $1B Post-Fusaka Upgrade Amid Broader Crypto Selloff

Ethereum's Fusaka upgrade launched on Wednesday, marking a significant step forward in the network's journey to enhance scalability and efficiency. The upgrade merges the Osaka execution-layer changes with the Fulu consensus-layer, aiming to reduce hardware needs for node operators and improve rollup data handling. One of the key features, EIP-7594, is expected to bring major improvements to Ethereum's performance according to technical analysis.

The market response has been mixed. Despite the technical advancements, Ethereum's price has seen a notable decline, contributing to over $1 billion in market losses. This downturn is part of a broader trend affecting multiple cryptocurrencies since November, reflecting ongoing bearish sentiment in the digital asset space as market data shows.

Ethereum's Fusaka upgrade is expected to have a positive impact on miner extractable value (MEV) and rewards for ETH stakers, as it enables validators to manage transaction sequencing for Layer-2 networks. This feature could enhance the economic incentives for participants in the Ethereum network, potentially attracting more stakers and improving the security of the blockchain according to analysts.

How Markets Reacted

Ethereum's price surged nearly 9% in the 24 hours leading up to the upgrade, with ETH trading around $3,100. The increase came as the network approached its next major milestone, with analysts noting that the upgrade could drive renewed investor interest. According to CoinGecko data, the cryptocurrency has seen more than $30.7 billion in trading volume, bolstered by a broader crypto market rebound led by Bitcoin as reported by CoinGecko.

Despite the pre-upgrade optimism, Ethereum's post-activation price trajectory has not fully reflected the positive technical changes. Market observers have attributed this to broader crypto market conditions and macroeconomic factors, including continued uncertainty over central bank policies and global economic trends. The recent volatility has left Ethereum's market cap vulnerable to further swings as market data indicates.

Analysts are closely monitoring whether the implementation of PeerDAS will deliver on its promised efficiency gains and whether it can support the growing number of decentralized applications on the network according to market analysis.

Another focus is on the impact of the upgrade on Ethereum's gas limit, which has been increased from 45 million to 60 million. This change allows the network to process more transactions per block, which is expected to reduce fees during periods of congestion. Analysts are tracking on-chain data to see if this leads to a measurable increase in transaction throughput and user activity as reported by analysts.

Additionally, the timing of the upgrade-occurring amid low network activity-has raised questions about its effectiveness. Some analysts argue that the current bear market conditions could limit the immediate impact of the upgrade, as user and developer activity may remain subdued. However, historical patterns, such as the positive impact of the Pectra upgrade earlier in 2025, offer a potential template for how the Fusaka upgrade might unfold as market analysis suggests.

What This Means for Investors

The Fusaka upgrade is seen by many as a critical step in Ethereum's evolution, with potential long-term benefits for both investors and users. Institutional adoption remains a key driver of Ethereum's value, with 26 public companies now holding ETH. This trend is expected to continue as more firms recognize the network's role in decentralized finance and blockchain innovation according to market reports.

For individual investors, the upgrade's impact is less clear-cut. While technical improvements are generally positive, the broader market environment remains a significant factor. Ethereum's price performance in the coming months will likely be influenced by macroeconomic developments, including the U.S. Federal Reserve's interest rate policy and the global economic outlook as analysts note.

Investors are also watching for signs that the upgrade will lead to renewed interest in Ethereum-based projects and protocols. The network's total value locked (TVL) remains strong, with $65 billion in TVL, a $168 billion stablecoin market, and over 1,670 active protocols. These metrics suggest that Ethereum's ecosystem remains resilient despite recent market pressures according to market data.