While the broader cryptocurrency market demonstrated relative stability over the weekend, Ethereum has come under significant selling pressure. The world’s second-largest digital asset is trading notably weaker than previous sessions, with its decline primarily attributed to internal network issues rather than external market forces. Specific technical problems are unsettling investors, casting doubt on short-term stability despite the recent implementation of the “Fusaka” upgrade.
Technical Hiccups Undermine Confidence
At the heart of the current price weakness lie growing concerns over “Network Finality.” The Ethereum blockchain has experienced repeated, multi-hour delays in recent days before transactions receive their final confirmation. For users and investors who depend on swift and secure settlements, these interruptions represent a serious operational hurdle.
This uncertainty is clearly reflected in key fundamental metrics. The Total Value Locked (TVL), a crucial indicator of capital committed to the network, has fallen from approximately $90 billion in September to around $70 billion currently. This decline of nearly 22% suggests capital is exiting the Ethereum ecosystem, with users potentially migrating to competing Layer-1 networks.
A Contrast Between Long-Term Vision and Short-Term Reality
The present technical difficulties stand in sharp contrast to Ethereum’s documented long-term development progress. The “Fusaka” upgrade, successfully deployed on December 3, 2025, is considered one of the most significant technical milestones since “The Merge.” This update aims to enhance scalability through new data sampling models (PeerDAS) and reduce costs for Layer-2 solutions by 40 to 60 percent.
Should investors sell immediately? Or is it worth buying Ethereum?
Investors are now weighing a critical balance: do the long-term efficiency gains promised by Fusaka outweigh the structural risk posed by current finality delays? While the upgrade lays the infrastructure for cheaper transactions, the ongoing network disruptions are eroding trust in the reliability of the base layer itself.
Institutional Investors Maintain a Steady Stance
Despite the network unrest, institutional investors have so far remained composed. Financial products like the BlackRock Ethereum ETF recorded steady inflows throughout the third and fourth quarters of 2025. Furthermore, regulatory clarity from the CFTC, which has classified Ethereum as a security for derivatives trading, provides a stable foundation separate from day-to-day technical challenges.
Ethereum is currently trading around $3,081, marking a decline of over 5% from the prior day. From a chart perspective, this move brings the support zone between $3,000 and $3,040 into focus. On the upside, the area around $3,320 now constitutes a substantial resistance level that bulls would need to reclaim to signal a potential trend reversal.
The Path Forward
Ethereum is navigating a proving ground where immediate technical shortcomings are pitted against long-term fundamental improvements. The price trajectory in the coming weeks will likely hinge on the development team’s ability to promptly resolve the transaction finality issues and stem the outflow from TVL. Should these problems persist, a test of the psychologically significant $3,000 level appears increasingly probable.
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