Ethereum Price Up 4% on Upgrade Expectations, Traders Prepare for Potential Dip
Ethereum (ETHUSD) has experienced a surge of about 4% in the last 24 hours, driven by optimism surrounding the Fusaka upgrade. This increase comes at a time when cryptocurrency markets are experiencing sell-offs, prompting dip traders to take positions. The rally in the world’s second-largest cryptocurrency is a result of a combination of upgrade optimism, technical factors, and macro-driven inflows into the crypto market.
Crypto analysts have pointed out that while the short-term outlook for ETH is bullish, it is crucial for the cryptocurrency to maintain the $2,800 level and demonstrate progress in the execution of the Fusaka upgrade to sustain its momentum. The Fusaka upgrade holds significant importance for Ethereum’s future, as it aims to enhance scalability, efficiency, and reduce transaction costs, particularly for Layer 2 (L2) networks.
Data from a leading crypto exchange indicates that Ethereum has climbed by 3.80% to reach $2,809 as it seeks to recover from a dip earlier in the week. Despite testing the $2,680 support level, ETH managed to bounce back, with the Relative Strength Index (RSI) hitting 28.15 – the most oversold level since May 2025. The 20-day exponential moving average now serves as a resistance level at $2,823.
The market capitalization of Ethereum has increased by 3.8% in the last 24 hours, with trading volume reaching $17.4 billion as investors show renewed interest in the cryptocurrency. Trading activity for Ethereum dropped by 50% as investors began re-entering positions following the recent price dip.
Investor expectations are focused on Ethereum’s upcoming Fusaka upgrade scheduled for December 3. This upgrade is set to introduce PeerDAS, which will significantly increase data capacity for Layer 2 networks by 10x. Past upgrades, such as the Pectra upgrade in May 2025, have led to substantial price surges, with ETH gaining 50% within the same period.
Additionally, market expectations of a potential Federal Reserve rate cut next month are fueling investor optimism. Recent weak US jobs data have increased the odds of a rate cut to 70% from 40% the previous week. Analysts believe that this could be an underestimated catalyst that triggers a broader market rebound.
The Fusaka upgrade, slated for December 3, combines consensus and execution changes aimed at boosting throughput and L2 economics. The key focus in the near term will be on client release confirmations and early post-fork performance signals. As the market anticipates this upgrade, Ethereum continues to be a cryptocurrency to watch in the coming weeks.
