Ethereum Price Rally Ignites as Major Fusaka Upgrade Activates
The Ethereum price rally is officially on, with ETH decisively breaking above the psychological $3,000 barrier. This surge follows the successful activation of the Fusaka upgrade on December 3rd, marking Ethereum’s most significant scalability leap since EIP-4844. The network is now primed for substantially lower rollup costs, but the charts show a critical technical battle is just beginning.
The Fusaka Upgrade: Fueling the Rally
The Fusaka upgrade is a game-changer for network capacity. Its star feature, PeerDAS (Peer Data Availability Sampling), allows validators to verify data efficiently without downloading entire blobs. This technical marvel paves the way for an order-of-magnitude increase in blob throughput. Furthermore, the upgrade doubles block gas limits and sets the stage for two more blob-parameter expansions in the coming weeks. This directly tackles high transaction fees, laying the foundation for mass adoption heading into 2026.
Technical Battle at a Critical Resistance Zone
While the breakout past a key descending trendline is bullish, the path ahead is contested. ETH now faces a massive wall of resistance where its 20-day, 50-day, and 200-day Exponential Moving Averages (EMAs) converge. This dense cluster has capped every major rally attempt for months. Additionally, the Supertrend indicator remains in bearish territory, signaling caution. For this Ethereum price rally to transition into a sustained uptrend, a decisive daily close above this EMA jungle is absolutely critical.
Derivatives Traders Bet on Continued Volatility
Supporting the bullish momentum, derivatives data shows a notable rise in Open Interest. This means traders are piling back into leveraged positions, anticipating significant price movement in the near term. This renewed speculative interest adds fuel, but also volatility, to the current breakout attempt.
My Thoughts
Fusaka is a monumental step for Ethereum’s roadmap, directly addressing its core scalability challenges. The price reaction is justified, but the technicals present a clear line in the sand. This isn’t just a meme coin pump; it’s a fundamental re-rating of network capacity. If buyers can muster the strength to absorb selling pressure at the EMA cluster and reclaim it as support, it would signal a major trend reversal and could open the floodgates to $3,500 and beyond. The next 48-hour close is paramount.