Fusaka Upgrade Boosts Confidence in Ethereum, Analysts Set $3,500 Target

Ethereum (ETH) is back in focus as the Fusaka upgrade goes live, pushing its price firmly above $3,200. Following weeks of fluctuating trading and pervasive anxiety in the broader cryptocurrency market, the combination of a significant technical update and increasing on-chain activity is presenting traders with a new narrative.

Key Takeaways

The recent Fusaka upgrade has reignited interest in Ethereum, lifting its price above $3,200.
The upgrade features PeerDAS technology, which significantly enhances data availability and scalability.
Recent accumulation trends indicate that larger holders are buying ETH, sparking institutional interest as well.
Analysts are targeting a price range between $3,300 and $3,500, with a potential upside of about 10%.
Despite the bullish sentiment, the overall market remains labeled as “bearish,” which may affect ETH's stability.

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Fusaka Upgrade Shifts Attention Back to Ethereum’s Scaling Strategy

The Fusaka upgrade, which is Ethereum’s second significant network enhancement of 2025, was activated at block height 18,200,000. Central to this upgrade is the introduction of PeerDAS, a data availability sampling system that allows nodes to store only portions of blob data rather than entire datasets.

This improvement is estimated to increase blob throughput by nearly eightfold, relieving congestion and enabling layer-2 networks to process more transactions through Ethereum’s base layer.

Developers portray Fusaka as another advancement in Ethereum’s long-term scaling strategy, making the main chain more compatible with escalating layer-2 activity.

In addition to PeerDAS, the upgrade includes a range of Ethereum Improvement Proposals (EIPs) that adjust gas limits, transaction sizes, cryptographic support, and block configurations, all aimed at enhancing operational efficiency while keeping validator requirements reasonable.

On-chain data reveals that “shark” wallets, holding between 1,000 and 10,000 ETH, have increased their accumulation in recent weeks, making significant purchases during price dips around $2,700 to $3,000.

Institutional interest appears to be rising as well. BitMine has reportedly added over 18,000 ETH to its treasury in anticipation of the Fusaka launch, while U.S.-based spot Ethereum ETFs have seen notable inflows.

Currently, ETH is trading around $3,200, with analysts observing resistance levels between $3,300 and $3,500. Short-term models suggest the price may reach approximately $3,537 within days, which would indicate a 10% gain if the current trend continues.

However, market indicators remain mixed. The prevailing conditions are still regarded as “bearish,” meaning that a price pullback could result in ETH testing support levels around $3,100, $3,000, or even the $2,850 mark.

As the Fusaka upgrade takes effect, the focus has returned to Ethereum's fundamentals, testing whether the renewed confidence can help the cryptocurrency surpass the $3,500 mark.

Cover image from ChatGPT, ETHUSD chart from Tradingview.