Key Highlights
- Ethereum is set to implement the Fusaka upgrade, aimed at enhancing network scalability and reducing transaction fees.
- The upgrade is expected to significantly improve the performance of layer-2 protocols, making Ethereum more attractive to developers.
- ETH has recently shown a bullish trend, bouncing back from a key support level of $2,750.
Fusaka Upgrade Details
The Fusaka upgrade is anticipated to reduce network fees by 40% to 60%, which could lead to increased adoption among both institutional and retail users. This follows the previous upgrade, Pectra, which had already improved scalability by increasing the number of datasets that can be added to a single block.
One of the main features of Fusaka is the increase in the gas limit per block from 30 million to 60 million, allowing for more transactions to be processed simultaneously, thus enhancing speed and reducing costs.
Ethereum's Market Position
Ethereum maintains a dominant position in the decentralized finance (DeFi) sector, holding a 67% market share with nearly $70 billion in total value locked (TVL). In the real-world assets (RWA) market, it commands a 65% market share with $11.8 billion in assets. Additionally, Ethereum accounts for 54% of the stablecoin market, with $167 billion in stablecoins on its mainnet.
Despite previous concerns regarding scalability, the successful implementation of upgrades like Pectra and Fusaka has bolstered confidence in Ethereum's growth potential, pushing ETH towards new all-time highs.
Technical Analysis
The daily chart indicates a double-bottom formation at the $2,750 support level, which is a bullish signal. A confirmed breakout above $3,300 would invalidate the current downtrend and suggest a potential rally. Recent trading volumes have increased, indicating heightened interest, and the Relative Strength Index (RSI) has shown early signs of a buy signal.
A decisive move above the 200-day exponential moving average (EMA) would further confirm a bullish outlook, increasing the likelihood of a retest of recent all-time highs.