Ethereum Shuts Down Holesky Testnet, Rolls Out Hoodi for Q4
Ethereum developers will decommission the Holesky testnet in November, two years after its 2023 launch. Designed to stress-test Ethereum’s proof-of-stake infrastructure, the Holesky testnet encountered validator inactivity leaks and long exit queues following the Pectra upgrade, prompting a replacement. In March 2025, the Ethereum Foundation introduced the next-generation Hoodi testnet to support Pectra features, future Fusaka upgrades, and a refreshed validator set. Sepolia and Ephemery remain active for dApp testing and rapid validator resets. Meanwhile, network usage surged: August saw 19.45 million active Ethereum addresses, near the May 2021 peak. Institutional demand has also climbed, with Tom Lee’s BitMine boosting its holdings by 12% to 1.71 million ETH, and BlackRock’s Ethereum ETF recording a $314 million inflow on August 25 and $2.4 billion in daily trading volume. Analysts from CryptoBusy identify $4,520 as key resistance, noting that a breakout could push ETH above $4,800. Combined with historical Q4 rallies, these factors point to strong fourth-quarter momentum for Ethereum.
Bullish
The retirement of the Holesky testnet and introduction of the more robust Hoodi testnet demonstrate continued protocol development and scalability improvements. Record-high active addresses and mounting institutional inflows—highlighted by BitMine’s ETH accumulation and BlackRock’s ETF volumes—reinforce on-chain strength. Historical Q4 seasonality and key resistance levels add technical bullish pressure. Together, these factors support a positive outlook for Ethereum price action in both the short and long term.