Ethereum Price News: Fusaka Upgrade Hits as ETH Bounces Off $2,800

Ethereum (ETH) has gone up by nearly 4% in the past 24 hours and has surpassed the $3,100 level as developers get ready to implement the Fusaka upgrade.

This technical overhaul to the network should supposedly improve its scalability and reduce trading fees significantly by improving the performance of layer-2 protocols like Arbitrum, Optimism, and Base.

Fusaka Upgrade Expected Outcome – Source: X.com

Community estimates expect between a 40% to 60% reduction in network fees, which should make the Ethereum network even more appealing to developers at a point when both institutional and retail adoption are rising.

The latest upgrade, Pectra, was one of the reasons why Ethereum rallied toward $4,000 as the network’s scalability dramatically improved. Pectra increased the number of blobs (datasets) that can be added to a single ETH block from 3 to 6.

Meanwhile, one of the main proposals introduced by Fusaka is an increase in the gas limit per ETH block from 30 million to 60 million. This results in a higher number of transactions processed per block, which translates into faster speed and lower fees.

Ethereum Has No Serious Rival In The DeFi or RWA Spaces

Ethereum continues to be the undisputed leader in the smart contracts space with a 67% market share in the DeFi space. Its total value locked currently sits at nearly $70 billion, while its closest competitor, Solana, has a TVL that is just a bit more than a tenth of that figure.

Chains Ranked by Total Value Locked (TVL) in RWAs – Source: RWA.xyz

Similarly, in the real-world assets market (RWA), Ethereum serves as the layer-one chain for $11.8 billion worth of assets with a 65% market share.

Moreover, in the stablecoins market, Ethereum has a 54% market share with $167 billion worth of these assets currently living on its mainnet.

At some point, the community questioned if the network could overcome its technical hurdles – e.g. limited scalability.

This posed a threat to its ecosystem growth and resulted in a ceiling of $4,000 for Ethereum multiple times.

However, now that both Pectra and Fusaka have shown that the developing team can work things out, the demand for ETH has increased to the point of pushing the token to a new all-time high recently.

ETH Makes Double Bottom at $2,750

The daily chart shows that ETH has bounced two times already after hitting the $2,750 area, making this the key support level to watch within the next few days. Double bottoms are high probability setups that could result in huge upside potential if they are confirmed.

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

A move above $3,300 would give the buy signal for this pattern, as it would invalidate ETH’s downtrend by overriding the previous lower low.

Trading volumes have increased in the past couple of days, and currently account for 7% of the token’s circulating market cap at $27 billion.

Meanwhile, the Relative Strength Index (RSI) has sent an early buy signal upon climbing above the 14-day moving average. If the oscillator gets past the mid-line, then this signal will be confirmed.

However, a move out of Ethereum’s price channel, followed by a jump above the 200-day exponential moving average (EMA), would be the definite green light for a long position. At that point, the likelihood of a retest of the token’s recent all-time high will be at its highest.