Ethereum price carves out rare bullish pattern ahead of Fusaka upgrade
Ethereum is flashing an unusual technical signal just as one of its most important network upgrades in years approaches. After months of weakness and a broader market sell-off, ETH has printed a massive falling wedge on the daily chart – a pattern that often precedes sharp bullish reversals.
On Sunday, Ethereum was changing hands near a key psychological and technical support zone around 3,000 dollars. From its peak earlier this year, the token has already shed close to 40%, moving in lockstep with the ongoing correction across the crypto complex. The drawdown has shaken leveraged traders and long-term holders alike, but it has also pushed ETH into an area where buyers historically start paying attention.
Fundamentally, Ethereum is heading into a powerful catalyst: the Fusaka upgrade, scheduled for December 3 this year. While it may not sound as headline-grabbing as some earlier milestones, Fusaka is a major under-the-hood improvement that could materially strengthen Ethereum’s position as the leading smart-contract platform over the next cycle.
One of the centerpiece changes is Peer Data Availability Sampling. This feature allows validators to verify rollup blob data without downloading the full dataset. In practical terms, Ethereum nodes will be able to confirm that large chunks of off-chain data are available and valid while using far less bandwidth and storage. This is critical for rollups, which are central to Ethereum’s long-term scaling roadmap.
By making data availability checks more efficient, Fusaka aims to unlock significantly higher throughput for rollups without overburdening the base layer. That could translate into cheaper, faster transactions for users on layer-2 networks, while keeping Ethereum itself more decentralized by lowering hardware requirements for validators and node operators.
Fusaka is also set to introduce verkle trees, a more advanced commitment structure that can dramatically reduce the amount of data nodes need to store, while still allowing them to verify the state of the network. Alongside this, the upgrade will bring predictable blob fees and adjustments to history expiry, helping to better manage chain bloat and improve fee market efficiency. Together, these changes are designed to keep Ethereum scalable and competitive in crucial segments like decentralized finance and the rapidly growing real-world asset tokenization space.
This steady stream of technical upgrades is a key reason why some large investors have continued to accumulate ETH, even amid price volatility. One prominent buyer is Tom Lee, who has been deploying substantial capital into ETH through his company BitMine Immersion. Backed by high-profile figures such as Cathie Wood and Peter Thiel, BitMine has reportedly built an Ethereum position worth over 10 billion dollars in recent months, signaling long-term confidence in the asset’s fundamentals and network growth.
From a technical perspective, Ethereum’s chart still carries visible scars from the recent market crash. Over the past two months, a major liquidation cascade wiped out billions of dollars in leveraged positions within a single day, accelerating the downward move. This forced selling pushed ETH firmly below its 50-day and 100-day moving averages – a configuration that typically confirms that bears still command short-term momentum.
The Supertrend indicator reinforces this view, currently signaling that the prevailing direction remains bearish on the higher time frames. As long as ETH trades under the main resistance levels identified by these indicators, short sellers and cautious traders may feel emboldened to fade rallies.
Yet within this negative backdrop, a potentially powerful bullish structure has emerged. The daily chart shows Ethereum forming a sprawling falling wedge – a pattern defined by two downward-sloping, converging trendlines that encapsulate a compressing price range. In technical analysis, falling wedges appearing after substantial downtrends are often interpreted as early signs of a trend reversal, especially when confirmed by supportive momentum indicators.
Supporting this view, the MACD indicator has now printed a bullish crossover, with its faster line moving above the slower signal line. This crossover hints that downward momentum is waning and that buyers may be quietly regaining control beneath the surface. At the same time, the Relative Strength Index has turned higher from oversold or near-oversold territory and is slowly climbing back toward the neutral 50 level. This shift suggests that selling pressure is losing intensity, opening the door to a potential relief rally.
If the falling wedge plays out as textbook theory suggests, Ethereum could be poised for a rebound in the coming days or weeks. The first meaningful upside target sits near 3,500 dollars, a zone that served as a pivotal support area earlier in the year and has now flipped into a strong resistance level. A breakout above that region – ideally backed by rising volume and improving on-chain activity – would give bulls stronger confirmation that a medium-term bottom might be in.
However, the bullish thesis has a clearly defined invalidation point. A decisive drop below support around 2,635 dollars would break the lower boundary of the wedge and signal that sellers remain firmly in charge. Such a move could trigger another wave of liquidations and force the market to search for a new equilibrium at lower price levels.
For traders, the current setup creates a classic risk-reward dilemma. Entering near support inside a falling wedge ahead of a major fundamental catalyst can offer attractive upside if the pattern resolves to the top. But this approach requires disciplined risk management, clear stop-loss placement around or below 2,635, and an understanding that macro conditions and broader crypto sentiment can still derail what appears to be a promising chart formation.
Long-term investors, on the other hand, are more likely to focus on the structural trends underpinning Ethereum rather than short-term volatility. Fusaka is just one step in a long roadmap aimed at turning Ethereum into a highly scalable, energy-efficient, and developer-friendly platform. Previous transitions – such as the move to proof-of-stake and the introduction of EIP-1559 – ultimately altered ETH’s economic profile in ways that bullishly influenced its long-run supply-demand dynamics. Fusaka could further entrench Ethereum as the core settlement layer for a wide range of financial and non-financial applications.
Beyond pure technology, Ethereum’s role in DeFi and real-world asset tokenization may become a key driver for future demand. As more traditional institutions experiment with tokenizing bonds, funds, commodities, and even physical assets, they are likely to favor robust, secure, and liquid networks. Ethereum’s deep liquidity, battle-tested infrastructure, and large developer base give it an advantage in this emerging race, and each new upgrade helps to strengthen that moat.
Investor sentiment will also hinge on how quickly the benefits of Fusaka become visible in user experience. If rollup fees shrink, transaction times improve, and layer-2 adoption accelerates, market participants may begin to price in a more optimistic long-term outlook, supporting higher valuations even if macro conditions remain choppy. Conversely, any delays, bugs, or unforeseen complications around the upgrade could temporarily weigh on confidence and slow capital inflows.
Over the medium term, Ethereum’s price trajectory is likely to be shaped by the interaction of several forces: global risk appetite, regulatory developments, competition from other layer-1 and layer-2 networks, and the success of its scaling roadmap. The current falling wedge, MACD crossover, and improving RSI are all constructive signs, but they exist within a broader ecosystem that remains highly sensitive to news, leverage conditions, and market psychology.
For now, the market is watching two crucial levels: support near 2,635 dollars and resistance around 3,500 dollars. A sustained bounce from the lower boundary of the wedge, coupled with a successful, uneventful Fusaka rollout, would strengthen the case for a new uptrend to form into 2025. A breakdown instead would serve as a reminder that even strong fundamentals and upcoming upgrades cannot always overpower the gravitational pull of a risk-off environment.
In summary, Ethereum finds itself at a pivotal crossroads. On one side, a rare bullish chart pattern, improving momentum indicators, and a transformative network upgrade are aligning in its favor. On the other, lingering bearish technicals and the memory of recent liquidations keep caution elevated. How ETH behaves around these key support and resistance zones – particularly as Fusaka goes live – is likely to set the tone for its next major move.