At present, the dominant mood is significantly shaped by apprehension, ambiguity, and skepticism. Millions have vanished, essential support levels have fallen apart, and the overall risk appetite has diminished. As capitulation risk resurfaces, the expected Q4 boost is gradually shifting into unfavorable ground. Overall, December is beginning with a clear negative sentiment. The timing for the Ethereum upgrade is less than ideal, as the Fusaka launch is set to go live on December 3rd. The question now is: Does this present a chance for the classic strategy of capitalizing on fear while others are in a state of panic selling? Even with some technical hurdles, 2025 has emerged as an important year for Ethereum. The Pectra upgrade was introduced during the initial half of the year. What’s the goal? Improve the network’s speed and efficiency, especially for Layer-2 scaling solutions. The effects were notably visible both on-chain and in the charts.
After the launch on May 7th, ETH experienced a remarkable increase of 40% in just three days, reaching the $2,500 level for the first time since early March. Even with the persistent uncertainty, ETH is still around 38% higher than where it was before the upgrade. To put that into perspective, Bitcoin is trading roughly 10% below the $95k range it occupied during that same period, highlighting a notable indication of ETH’s relative outperformance, despite trailing BTC thus far in Q4. The launch marked a crucial milestone. Prior to the upgrade, Ethereum’s daily transactions were approximately 1.25 million. By mid-August, that number jumped to around 1.75 million, with active addresses rising by 243k in the same timeframe. The Ethereum upgrade has arrived, aligning with strong on-chain conditions. The Fusaka upgrade is poised to improve Ethereum’s performance across both the front and backend.
On the backend, Peer Data Availability Sampling allows nodes to confirm blocks without downloading all the data, while improved block data capacity supports a higher volume of transactions per block. The gas limit is increasing from 45 million to 60 million to support higher throughput. This is a beneficial change for users. ETH’s average gas price has dropped to just 0.04 Gwei, leading to reduced transaction costs. In summary, the Ethereum upgrade is coming at a time of decreased network activity and minimal fees. The forthcoming upgrade, similar to the Pectra enhancement, could greatly boost on-chain activity, enhancing an already beneficial framework. As we consider what lies ahead, a surge similar to the trends observed in the middle of the year should not be overlooked. The dip at $2,800 offers an attractive buying chance, especially with the Ethereum upgrade improving on-chain fundamentals and institutional interest in ETH hitting new heights. In a network as significant as Ethereum, enhancements are never carried out in isolation.
Ethereum leads the DeFi space, with a total value locked of $65 billion, a stablecoin market worth $168 billion, and a remarkable $442 billion in bridged total value locked. With more than 1,670 protocols in action and a market cap surpassing $340 billion, its influence is clear. Any major Ethereum upgrade could spark a broader market excitement. For instance, 26 publicly traded companies currently possess ETH, surpassing all Layer 1s, with Solana following in second place with 18. In simple terms, the interest from institutions usually corresponds with strong fundamentals. Consider BitMine. The firm currently holds 3% of the total ETH supply, having recently boosted its holdings from 54,000 to 69,000 ETH. Furthermore, Tom Lee has established a target of 5% and is preparing to create a validator network in Q1 2026, aiming for an impressive $500 million in staking revenue. With this level of support, Ethereum upgrades such as the forthcoming Fusaka could further improve ETH’s treasury profile. The existing market conditions distinctly favor the approach: “Seize the opportunity when others are in a state of panic.”