The world of Ethereum (ETH) is currently marked by a notable shift as the cryptocurrency recently experienced a price correction from the heights of $4,250, dipping below crucial support levels. As traders navigate this volatility, ETH now finds itself clinging to the $4,000 support level amid the impending launch of its Fusaka upgrade, scheduled for December 3.
During the latest trading session, Ethereum peaked at $4,252 before facing a downturn that led the price to breach key support levels, including the $4,120 and $4,050 thresholds. This decline saw Ethereum shift below both the 50% Fibonacci retracement and a bullish trend line previously supporting prices around $4,100. Currently, ETH is trading under the $4,080 mark and has fallen beneath the 100-hourly Simple Moving Average (SMA), indicating a concerning shift in momentum.
Market indicators reinforce the bearish sentiment surrounding Ethereum. The hourly MACD is gaining traction within the bearish zone, while the Relative Strength Index (RSI) has dipped below 50, reflecting a waning bullish outlook as traders brace for further action.
Current Support and Resistance Levels
As Ethereum attempts to stabilize, it confronts immediate resistance near the $4,040 and $4,080 levels. A substantial rally beyond $4,120 could signal a bullish resurgence, potentially driving prices toward $4,200 and beyond. However, if the cryptocurrency cannot break these resistance points, a new wave of selloff could emerge.
Should Ethereum falter, initial support is found at $3,950, closely followed by a significant level at $3,920, coinciding with the 61.8% Fibonacci retracement of the recent price wave. A decisive move below $3,920 could compound the selloff, pushing Ethereum toward the $3,880 and $3,840 regions. The latter could provide a challenging environment as $3,780 marks the next key support.
The Crucial Fusaka Upgrade
Despite the market correction, Ethereum’s developmental roadmap marches forward with the anticipated Fusaka upgrade, which recently completed its final test on the Hoodi testnet on October 28. This upgrade signifies the culmination of efforts to enhance Ethereum’s scalability and economic efficiency—critical aspects as the network grows in usage.
The Fusaka upgrade, which follows the Pectra update from approximately six months ago, introduces several Ethereum Improvement Proposals (EIPs) aimed at reducing costs for developers and users while bolstering security. A key feature of this upgrade is PeerDAS, allowing validators to process only segments of data rather than whole blobs, easing bandwidth demands and significantly cutting operational costs.
The successful test on Hoodi, alongside prior tests on the Holesky and Sepolia networks, sets the stage for Fusaka’s mainnet activation slated for December 3. This timeline aligns with Ethereum Foundation’s bi-weekly discussions, suggesting a well-prepared launch following the final test.
With market participants keeping a close watch on Ethereum’s price movements and the upcoming Fusaka upgrade, the coming weeks promise to be pivotal for the second-largest cryptocurrency. Investors and analysts alike will be keenly interested in whether ETH can maintain above the crucial $4,000 support and how the upgrade will reshape Ethereum’s landscape.
