While the broader cryptocurrency market exhibits caution, Ethereum is demonstrating notable strength. The digital asset has surged past the $3,000 threshold, posting a weekly gain exceeding ten percent. This performance significantly outpaces Bitcoin’s modest two percent increase over the same period. Analysts attribute this growing momentum primarily to the successful implementation of the recent Fusaka upgrade, a major technical enhancement for the network’s infrastructure.
Institutional Accumulation Defies Broader Sentiment
The positive on-chain activity presents a compelling narrative. Ethereum is on track to process nearly six trillion dollars in stablecoin transfer volume during the fourth quarter of 2025—a figure that already surpasses the total for the entire third quarter. This data underscores Ethereum’s dominant position as the primary settlement layer for dollar-pegged tokens like USDT and USDC.
Institutional players continue to build substantial positions despite a tentative market backdrop. Investment firm BitMine, led by market strategist Tom Lee, has established itself as one of the largest institutional holders of ETH, with a current stash of over 3.7 million coins. In a single 24-hour period recently, the firm purchased an additional 64,622 ETH, worth approximately $200 million.
The network’s foundational role is further cemented by other metrics: almost one-third of all ETH is now staked, and close to two-thirds of the entire DeFi capital ecosystem operates on Ethereum.
Fusaka Upgrade Delivers Tangible Efficiency Gains
Activated on December 3rd, the Fusaka upgrade represents Ethereum’s second major network improvement this year, following the Pectra update in May. Its core innovation is the introduction of PeerDAS (Peer Data Availability Sampling). This technology allows network validators to verify blockchain data through sampling, eliminating the need to download entire datasets. The result is a dramatic reduction in bandwidth requirements, by as much as 85 percent.
Should investors sell immediately? Or is it worth buying Ethereum?
For scaling solutions built on Ethereum, known as Layer-2 networks like Arbitrum, Optimism, and Base, the benefits are immediate and significant:
* Transaction costs on Layer-2s have plummeted by 40 to 60 percent.
* The block gas limit has been raised from 36 million to 60 million units.
* Blob capacity is set to increase eightfold through a phased implementation, lowering technical barriers for validators.
A follow-up adjustment on December 9th will raise the maximum blob capacity to 15. A further increase to 21 blobs per block is scheduled for January 7, 2026.
Macroeconomic Headwinds and the Path Forward
This bullish technical and on-chain picture contrasts with broader market uncertainty. The Bull Score from analytics firm CryptoQuant recently dropped to zero for the first time since early 2022—a signal the firm associates with bearish phases. CEO Ki Young Ju cautioned that without fresh liquidity inflows, the market could face an extended consolidation period.
November also saw negative flows for spot cryptocurrency ETFs, with net outflows totaling $1.42 billion. However, new institutional products continue to emerge. WisdomTree has launched an Ethereum staking fund, and asset management giant BlackRock is reportedly still evaluating options for a staked ETH ETF.
All eyes are now on the upcoming Federal Reserve interest rate decision. The market has largely priced in a 25-basis-point cut. The reaction to the announcement is expected to set the short-term directional tone. From a technical analysis perspective, the $3,000 level remains a critical reference point. A sustained breakout above $3,200 could pave the way for a move toward the $3,400 to $3,600 range. Conversely, a drop below $3,000 would likely bring the $2,800 zone into focus as the next support target.
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