Ethereum Holds Key Support After Fusaka Upgrade, Signalling Potential Rebound
Ethereum’s Fusaka upgrade activated smoothly on mainnet, restoring network stability and keeping ETH above the daily bull-market support band. Execution-layer optimizations addressed brief validator participation drops (approximately 25% of Prysm users) and minor client issues, with patches applied within hours and no chain halts reported. On-chain metrics showed transaction volumes up ~15% and a ~10–22% rise in staking/DeFi engagement across various providers. Technical indicators point to higher highs and higher lows on daily charts, with price respecting the 0.5–0.618 Fibonacci zone — a setup technical analysts describe as bullish if support holds. Developers announced an automated Blob Parameter-Only (BPO) hard fork scheduled for December 9 to boost rollup throughput (projected up to ~1.5x) and improve blob efficiency, potentially lowering Layer‑2 fees. Key takeaways for traders: network risk from the upgrade was contained, on-chain activity increased, and technical structure is bullish while macro drivers (notably Bitcoin moves) remain influential. Watch December 9 BPO changes and the 1D support band for trade entries and risk management.
Bullish
The news combines a successful protocol upgrade with supportive on-chain data and bullish technical structure, which together point to a positive market outlook for ETH. Fusaka’s smooth activation—despite brief Prysm and client hiccups—reduced execution risk and prevented downtime, a factor that often stabilizes trader sentiment. On-chain metrics (≈15% higher transaction volume; increased staking/DeFi participation) lower immediate sell pressure and indicate renewed usage. Technical signals—higher highs/lows and support at the 0.5–0.618 Fibonacci band—are classic bullish confirmations for swing and position traders. The upcoming automated BPO hard fork (Dec 9), expected to increase rollup throughput and reduce Layer‑2 costs, is a constructive catalyst for medium-term demand. Offsetting risks include broader crypto macro volatility (notably Bitcoin correlations) and potential unforeseen client bugs; these could cause short-term pullbacks. Overall: short-term traders should watch the 1D support band and liquidity around resistance for entries/stops, while medium-term investors can view the upgrade and BPO roadmap as positive for ETH fundamentals.