Ethereum’s Fusaka upgrade goes live: What it means for wallets, fees and ETH price outlook
Ethereum’s Fusaka upgrade goes live with major wallet improvements and cheaper L2 fees. Here’s what it means for ETH’s price outlook and key levels to watch.
Nic TseKey Takeaways
- Ethereum’s Fusaka upgrade activated on December 3, 2025, bringing native support for passkeys and an eight-fold increase in blob capacity.
- The upgrade brings passwordless wallets and dramatically lowers signature verification costs, improving mainstream user onboarding.
- ETH broke above $3,000 around the upgrade, supported by strong volume, before stabilizing in the $3,000 to $3,160 range.
- Past upgrades show mixed short-term reactions but stronger multi-month trends driven by fundamentals.
What the Fusaka upgrade is all about
Ethereum’s Fusaka upgrade officially went live on December 3, 2025, marking the network’s most significant scaling improvements in years. While past upgrades focused on consensus or fee mechanics, Fusaka is all about making Ethereum easier, cheaper and more intuitive to use, especially for everyday users who aren’t familiar with private keys or complex wallet setups.
A headline feature of Fusaka is EIP-7951, which supports a new type of cryptographic signature used by billions of devices worldwide, including iPhones, Android phones and modern hardware security keys.
This means Ethereum is now compatible with the same secure login method people already use to unlock their phones or log into apps.
Fusaka also rolls out a major upgrade called PeerDAS, which increases how much data Ethereum can handle behind the scenes. The result is cheaper and more stable costs on Layer-2 networks, which power transactions for millions of users. Developers expect significant fee reductions over time as more capacity comes online.
What happened to ETH price after Fusaka went live
ETH headed into the upgrade with positive momentum. In the 24 hours before activation, it climbed roughly 9% to 10%, reclaiming the $3,000 level after rebounding from support in the high-$2,700s.
During the upgrade window, ETH traded between $2,997 to $3,167, supported by a jump in trading volume that surpassed $30 billion.
Since then, price action has stabilized as traders digest the rollout. Much of the focus now shifts to how quickly Layer-2 fees decline in the weeks after PeerDAS goes live and whether upcoming protocol changes sustain the network’s recent momentum.
How ETH reacted to major upgrades in the past
Ethereum’s upgrade record illustrates a consistent pattern: major technical milestones tend to see limited immediate impact, but their economic effects accumulate over time.
Upgrade | Immediate impact | Three-to-six-month move | Notes |
Merge (2022) | –8% | +60% | Initial ‘sell-the-news’, then strong recovery |
Shanghai (2023) | +10% | +5% | Staking withdrawals absorbed smoothly |
Dencun (2024) | Flat | –10% | Macro dominated sentiment |
Pectra (2025) | +20 to 21% | +168% | Upgrade aligned with improving conditions |
Fusaka (2025) | +9 to 10% | TBD | Too early to assess medium-term impact |
ETH technical levels: Support, resistance, trend signals
Analysts are watching the following key levels as ETH trades around the psychological $3,000 mark:
Resistance
- $3,166 to $3,179: A major supply zone where approximately 2.76 million ETH sits, making it a challenging level to clear.
Support
- $2,800: The first major support flagged as important for preserving the current structure.
- $2,700 to $2,760: A secondary zone that caught dips in the days before Fusaka went live.
ETH remains in a constructive medium-term trend, supported by rising institutional interest and lower retail leverage. However, macro conditions, including global risk sentiment and upcoming events in the December FOMC minutes and the Consumer Price Index (CPI) data release, will continue to influence near-term direction.
Short-term and medium-term ETH price outlook
Short-term (next few weeks)
Market desks generally describe a balanced near-term outlook, with ETH likely to fluctuate between the $2,800 support zone and resistance near $3,150 to $3,200 as traders watch for early data on L2 fee reductions.
A sustained break above resistance could open room toward the mid-$3,000s, while a drop below $2,800 would shift focus back to the mid-$2,700s.
Medium-term (first half of 2026)
Longer-term projections vary but converge on a few themes:
- Some analysts place medium-term targets in the $3,300 to $3,600 range if fee savings and UX improvements drive higher network activity.
- Higher-end estimates suggest ETH could reach as high as $7,000 to $9,000 in ultra-optimistic scenarios that assume strong institutional inflows and improving macro conditions.
- Others highlight that upgrades alone rarely lead to immediate multi-month rallies; instead, they create the conditions for future strength once demand recovers.
The full effect of Fusaka on ETH’s outlook is expected to unfold progressively over the next several quarters rather than in a single price breakout.
(Sources: The Economic Times, TradingView, CoinTelegraph, Trading News)
Important information: This informational content is written by Crypto.com and should not be considered as an investment recommendation or advice. Trading cryptocurrencies carries risks, such as price volatility and market risks. Before deciding to trade cryptocurrencies, consider your risk appetite. All forecasting methods, scenarios, and examples are illustrative and subject to market uncertainty.
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