The Ethereum network has successfully implemented its latest major upgrade, known as Fusaka. Activated at block height 18,200,000, this technical enhancement introduces a key scaling solution designed to substantially reduce data costs for Layer 2 networks. Despite this positive fundamental development, ETH’s price action remains subdued, trading near $3,160, highlighting a market that is cautiously weighing technological progress against broader sentiment.
Institutional Accumulation Contrasts with ETF Outflows
While retail investor activity appears hesitant, on-chain data reveals significant institutional movement. In a notable display of conviction, Bitmine purchased approximately 41,946 ETH last week, a transaction valued at over $130 million. This acquisition brings the firm’s total holdings to more than 3.57 million ETH, signaling strong long-term confidence in the asset.
The picture from the exchange-traded fund (ETF) landscape is more mixed. On December 4, U.S. spot Ethereum ETFs recorded net outflows of $41.5 million. Although products like BlackRock’s ETHA had seen intermittent inflows, the recent withdrawals suggest a phase of temporary risk-off behavior among some fund investors.
PeerDAS Scaling Solution Multiplies Data Capacity
At the heart of the Fusaka upgrade is the implementation of Peer Data Availability Sampling (PeerDAS). This innovation is set to increase the network’s “blob” throughput by a factor of eight. The enhancement allows for significantly more data processing per block without burdening Ethereum’s main execution layer, a critical step for a rollup-centric roadmap.
Should investors sell immediately? Or is it worth buying Ethereum?
Early network metrics indicate the upgrade is having a tangible impact:
* Reduced Expenses: Layer 2 rollups are already reporting markedly lower costs for data submission.
* Operational Stability: The network has maintained stability throughout the technically complex hard fork process.
* Validator Consistency: The count of active validators has remained steady, indicating smooth participation.
Price Action Weighed Down by Options Expiry
Market technicians point to a “death cross” formation on the daily chart, and the overall Crypto Fear & Greed Index sits at 28, squarely in “Fear” territory. The ETH price, currently around $3,160, faced additional headwinds from the expiry of crypto options contracts worth $4 billion today. This monthly expiry event typically injects short-term volatility and has dampened momentum despite the positive network news.
Some observers, including market analyst Tom Lee, interpret the aggressive accumulation by large wallet addresses as a potential precursor to a recovery in the coming weeks. For now, the $3,100 support level is viewed as crucial. Whether the improved network fundamentals can translate into renewed price strength will likely become clearer in the final weeks of the year.
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