Ethereum News Today: Ethereum Surges Past $3,000 on Fusaka Upgrade Boost

Ethereum's Fusaka upgrade activated on December 3, 2025, introducing key advancements aimed at enhancing scalability and user experience. The update includes Peer Data Availability Sampling (PeerDAS) and increased block gas limits, which together improve data throughput and reduce transaction costs. ETH has responded positively, with prices surging past $3,000 in the days following the upgrade. Analysts are closely watching how these changes influence Ethereum's broader market dynamics.

The upgrade marks a significant milestone in Ethereum's long-term scaling strategy. By allowing validators to sample data rather than store full blobs, PeerDAS reduces the bandwidth and storage demands on the network. This innovation is expected to support higher transaction volumes on Layer 2 solutions and potentially lower costs for users. Institutional investors have also shown interest, with firms like BitMine and BlackRock increasing their Ethereum holdings ahead of the upgrade.

Fusaka builds on Ethereum's previous upgrades, including Pectra and Dencun, which had notable price impacts. Earlier this year, the Pectra upgrade contributed to a 29% rally in ETH, signaling a pattern of market optimism following major technical improvements. With Fusaka introducing more comprehensive scalability solutions, many are now drawing parallels to past performance and anticipating a similar or stronger response.

Market Response and Price Outlook

Ethereum's price has surged to levels not seen since before the recent market correction. On the day of the Fusaka activation, ETH climbed above $3,000 for the first time since mid-November, marking a pivotal moment for the cryptocurrency. This surge follows a liquidity sweep, where the price briefly dipped below key support levels before being met with strong buying pressure. Analysts suggest this pattern is consistent with a market transitioning from a bearish consolidation phase to a breakout scenario.

Technical indicators reinforce the bullish sentiment. ETH has broken out of a descending trendline that had acted as a ceiling for months, trading within a symmetrical triangle pattern. Key resistance levels now lie between $3,360 and $3,560, where the 20-day, 50-day, and 200-day exponential moving averages converge. A sustained breakout above this cluster could signal the start of a more extended uptrend.

Institutional and On-Chain Activity

Institutional activity has played a key role in supporting Ethereum's recent price action. BlackRock's recent transfer of 44,000 ETH into Coinbase and BitMine's continued accumulation of Ether highlight growing confidence in the post-upgrade network. These moves come at a time when Ethereum is preparing for potential ETF catalysts and further efficiency gains in 2026.

On-chain data also shows increased network activity, with daily active addresses rising and transaction volume surpassing $28.8 billion in a 24-hour period. Layer 2 throughput has reached record levels, and Ethereum's market capitalization has closed the gap with Bitcoin. These metrics suggest that the network is gaining traction as a primary settlement layer for DeFi and real-world assets.

Analyst Predictions and Key Levels to Watch

Analysts remain divided on Ethereum's short-term trajectory but broadly agree that the upgrade sets the stage for long-term growth. Tom Lee of Fundstrat maintains a bullish stance, projecting ETH could reach $7,000–$9,000 by early 2026. However, technical analysts caution that ETH has yet to confirm a strong breakout above key resistance levels. Valdrin Tahiri of CCN notes that while the $3,000 level has been retested as support, sustained momentum above $3,100 is needed to validate a lasting uptrend.

Key levels to watch in the near term include $3,050, which serves as a critical support line, and $3,100, which could signal a shift in market sentiment if defended. If ETH fails to hold $3,050 during consolidation, a pullback toward $2,950 may follow. Conversely, a confirmed close above $3,100 would invalidate bearish indicators and position $3,566 as the next resistance target.

Outlook and Verdict

Ethereum's Fusaka upgrade has created a favorable technical and fundamental environment for long-term growth. With institutional buying, derivative inflows, and on-chain improvements all aligning, the network is well-positioned to continue its dominance in the Layer 1 space. While near-term volatility remains possible, the broader outlook supports a bullish bias. Traders and investors are advised to monitor key resistance levels and institutional activity for further directional cues.