Ethereum Price News: ETH Rises Past $3K Ahead of Fusaka Update – Can It Hold?

Ethereum (ETH) has booked a 7% in the past 7 days as the token climbed above $3,000 yesterday. This is the first time that it gets back to this level in a week.

After several weeks of pronounced drops, the sell-off seems to be ready to take a breather after some positive news on the macroeconomic front.

First up, the U.S. government shutdown ended, and a flood of exchange-traded funds (ETFs) has received the nod from the U.S. Securities and Exchange Commission (SEC) since then.

Moreover, the head of the New York Federal Reserve said that a rate cut in December was still possible. Paired with a strong jobs report, his comments resonated with investors and caused ETH to pull on the brakes at $2,700.

Fusaka Upgrade Is Scheduled to be Implemented on December 3

Breaking past the $3,000 barrier is important from a psychological standpoint and could lure back traders at a point when open interest (OI) in the futures market has dried up.

Fear and Greed Index – Source: CoinMarketCap

The Fear and Greed Index reached a low of 11 at some point last week. These extremely pessimistic readings, the lowest since the index was launched in June 2023, are typically contrarian signals that signal a market bottom.

The last time the F&G index hit this low, cryptos started to recover, and Bitcoin (BTC) made a new all-time high a few weeks after.

Meanwhile, the Fusaka upgrade is set to be implemented on December 3. This technical improvement should result in lower network fees down the road while increasing the efficiency of layer-2 protocols like Arbitrum and Base.

“The Fusaka upgrade is expected to deliver noticeable benefits for Ethereum users. The introduction of EIP-7594 and EIP-7918 will enable rollups to operate more efficiently, reducing gas costs and settlement times,” Binance’s Research Team commented on the upgrade.

“As a result, users can experience cheaper and faster transactions even when the network is under heavy demand. Beyond this, EIP-7951 improves Ethereum’s compatibility with Web2 wallets, making it easier to connect to the Ethereum network,” the report further adds.

Ethereum Eyes $3,300 as RSI Flashes Buy Signal

Back when the Pectra upgrade was implemented in April this year, the price of Ethereum (ETH) started to recover and delivered strong gains.

At a point when institutional adoption is increasing, and Wall Street is falling in love with cryptos, can this upgrade provide a strong catalyst to push ETH back to $4,000?

ETH/USD Daily Chart (Binance) – Source: TradingView

The daily chart shows that ETH has been going up for 6 days in a row after hitting a former resistance at around $2,750. This strong bounce confirms that a mild recovery has started, and could result in a move toward $3,300, meaning a 10% upside potential in the next few days.

Meanwhile, the Relative Strength Index (RSI) has sent a buy signal after rising above the 14-day moving average.

However, this is not necessarily an indication that ETH is on an uptrend now, as the token is still trading below its 200-day exponential moving average (EMA) while its descending price channel structure remains intact.

If we break past the $3,400 barrier after the Fusaka upgrade kicks in, paired with an interest rate cut by the Fed in December, that could create a strong bullish narrative that could propel ETH back to its recent gains.