Ethereum prepares for Fusaka upgrade: what traders expect from ETH this week

Mike Smith 4 days ago

Ethereum is entering a new stage of development: this week the Fusaka upgrade is launched, the second major network upgrade in 2025. Against the backdrop of these expectations, ETH is holding close to $3,000, and market participants are debating whether the event will be the start of a new growth or a reason for sharp price fluctuations.

Fusaka is intended as a step towards a faster and more predictable network. The enhancement package is aimed at optimizing data processing and supporting Layer 2 solutions to reduce load during periods of high activity. For the average user, this means more stable fees and fewer moments when sending a simple transaction unexpectedly costs too much.

Decentralized application developers see the upgrade as a chance to expand Ethereum's usage scenarios. More efficient rollup conditions open the door to protocols that need high transaction rates, from financial services on the blockchain to gaming worlds with a high flow of in-game transactions. Teams are testing their solutions on the updated settings and calculating how the economics of their products will change with lower costs.

The market has so far reacted with restraint. Some traders reduce risk before the update date and refuse to aggressively leverage, remembering how past hardforks were accompanied by a chain of liquidations. Others are using the sideways price movement as an opportunity for careful accumulation of ETH, expecting that the successful implementation of Fusaka will strengthen Ethereum's status as a basic network for smart contracts and in the long term will support the interest of institutional investors.

The main intrigue relates to whether the reaction to the upgrade will remain calm or develop into a violent realignment of positions. Technical analysts are watching key areas where large bids are concentrated and the behavior of short-term holders, who are used to quickly locking in profits at the first sign of uncertainty. If the first hours after Fusaka's activation go smoothly and the network demonstrates the announced improvements, Ethereum's current stage of development will have an additional argument in the fight for capital's attention.