The Ethereum network activated its much-anticipated Fusaka upgrade on December 3, delivering the most significant throughput expansion since EIP-4844. The update prompted a sharp price response. Ether rallied to $3,085 before pulling back slightly and now trades near $3,060. The rebound reflects renewed optimism, but mixed signals from derivatives markets and on-chain usage suggest caution looms.

Fusaka live as throughput expands and blockchain upgrades roll out

The Fusaka upgrade introduces several technical enhancements. The network doubled its block-gas capacity and launched PeerDAS, a new verification method that lets validators inspect blob data by sampling instead of downloading full payloads. This setup paves the way for two additional “blob-parameter” expansions, expected later in December and in January, which together aim to unlock an order-of-magnitude increase in throughput. Ethereum developers suggested this upgrade should lower rollup fees heading into 2026.
A playful internal note described the update with a phrase:

“While not an official translation, ‘sloping side road’ reflects the playful fusion of Fulu and Osaka.”

Price jump stalls near $3,060 as derivatives markets show limited conviction

Ether’s price surge gained 8% on Tuesday, aligned with a broader crypto rally that followed stress in Japan’s government-bond market and renewed optimism for economic stimulus. Institutional demand increased after the U.S. Federal Reserve ended its balance-sheet reduction program on December 1, and many traders now expect a rate cut on December 10. That liquidity boost supported risk assets like tech stocks and cryptocurrencies.

Still, derivatives data tempered enthusiasm. The annualized premium on monthly ETH futures over spot remained at just 3%, unchanged from the week before. Values below 5% usually indicate weak demand for leveraged long exposure. Meanwhile, ETH put options traded at a 6% premium compared to equivalent call options, signaling bearish bias in options markets. Such skew suggests many professional traders expect limited upside in ETH, even as the broader macro environment appears supportive.

On-chain activity remains subdued as fees and DEX volumes decline

Despite network upgrades and price movement, Ethereum’s on-chain usage tells a different story. Weekly network fees dropped to roughly $2.6 million, the lowest level in over three years, down from $5.1 million four weeks earlier. Decentralized exchange (DEX) trading volume fell to about $13.4 billion over the same period, after peaking at $36.2 billion in August.

Meanwhile, rival networks saw modest gains. Chains such as Solana and Tron logged a 9% increase in seven-day fees, according to Nansen data, a sign that some DeFi participants may be shifting toward lower-cost alternatives.

A long-dormant “whale” wallet moved 40,000 ETH to a new address last Sunday. This triggered renewed speculation among investors about potential large-scale selling, a factor that may have contributed to traders’ reluctance to go long ahead of the upgrade.

Technical chart support remains intact but upside requires breakout

From a charting perspective, Ethereum holds several key technical levels. Support lies near $2,850, matching a trendline that absorbed repeated rejection during November. The recent rally broke a descending resistance line that stopped prior rebounds in October and early November, giving short-term buyers modest control within a symmetrical triangle formation.

Broken resistance may now act as support. A successful close above $3,363–$3,566, a zone containing the 20-, 50- and 200-day EMAs, could reintroduce upside potential. On the downside, a failure to hold support around $3,050 could trigger a move toward $2,950. The Supertrend indicator remains bearish at $3,382. Unless price clears this trigger level, algorithmic selling may resume at resistance.

Open interest in futures rose by 7.7%, signaling cautious re-entry of leveraged positions. That uptick could support a scenario in which Ethereum begins 2026 toward $4,000, provided that demand resumes. A missed breakout, however, would likely pressure sentiment and invite deeper retracements.

Mixed fundamentals cast doubt on a sustained post-upgrade rally

The Fusaka upgrade delivers real technical improvements. However, Ethereum’s weakening on-chain activity underscores a broader challenge: demand for decentralized applications remains tepid. With shrinking DEX volume and low fee revenue, the upgrade may improve scalability, but not necessarily reignite user interest.

At the same time, macro factors provide a mixed backdrop. The Fed’s liquidity injection and higher repo activity boost general risk appetite. Yet rising costs driven by tariffs and persistent inflation could keep some investors on the sidelines.

What markets will watch next

Traders will focus on multiple events over the coming weeks. The release of data showing post-upgrade DApp activity could reveal whether scalability gains translate into real usage growth. Market players will also monitor monetary policy signals from the Fed and economic data that could hint at future rate decisions.

Finally, a clean breakout above the $3,366–$3,566 resistance cluster will attract renewed institutional attention. Until then, Ethereum risks consolidation or further downside pressure if network demand fails to recover.

Ethereum now sits at a crossroads. With Fusaka online and price hovering near $3,060, upside remains possible, but only if traders find reason to switch from technical optimism to real crypto usage.

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