Ethereum Shows Bullish Signs as $3,000 Support Tested, Fusaka Upgrade Looms
Berlin – Ethereum (ETH) is exhibiting classic bullish signals despite recent market volatility, with 700,000 ETH leaving exchanges in the last 30 days, suggesting long-term investors are accumulating holdings in cold storage. Experts describe a phase of “discrete accumulation” were weaker investors are being shaken out while those with a longer-term outlook position themselves. The crucial $3,000 price level has so far held firm, though its sustainability remains uncertain.
The outflow from exchanges – a key indicator of holding intent – coincides with ongoing advancement aimed at improving Ethereum’s scalability and efficiency. The “Fusaka” hard fork upgrade,scheduled for late November or early December,focuses on significantly reducing transaction costs and boosting performance for Layer 2 solutions like Arbitrum and Optimism. This timing is notably relevant as Ethereum network activity has surged, currently processing over 1.6 million transactions daily, a 25 percent increase year-over-year, and reaching an all-time high in November. Fusaka aims to capitalize on this momentum by further lowering fees and increasing throughput.
Industry adoption is also expanding. BitMine Immersion Technologies currently holds 3.5 million ETH,while BTCS has integrated the DeFi protocol Aave into its corporate treasury. ETHZilla recently announced a $15 million partnership to tokenize real-world assets.
Macroeconomic headwinds, including a hawkish federal Reserve and a strong dollar, continue to pressure risk assets. Trading volume has decreased to $18-19 billion, indicating reduced market activity. Though, a November 10th bill introduced in the US Senate seeking to grant the CFTC regulatory authority over digital commodities offers a potential catalyst for increased institutional investment in Ethereum by providing clearer legal frameworks.
The central question remains whether the current market dip represents a healthy correction before another rally or the beginning of a prolonged bear market. The launch of Fusaka and the resilience of the $3,000 support level in the coming weeks will likely provide key insights.
