Ethereum fell more than 2% within 24 hours, falling below $3,000 after losing its $2,900 support level. The decline caused widespread liquidations, wiping out about $500 million in long positions. Data shows that $79 million of the $106 million in ETH-focused contracts that were liquidated were long bets.
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Trading activity spiked sharply during the decline, with daily volume rising 200% to $33.2 billion. The broader crypto market also shrank, falling nearly 1.2% and wiping out an estimated $1.1 trillion in value within hours. Bitcoin, SOL, XRP and DOGE followed similar downward moves.
Despite the volatility, some companies have accumulated ETH during the recession. BitMine Immersion Technologies increased its holdings by 96,798 ETH, bucking the trend of companies reducing risk exposure.
ETH's price gains some momentum on the daily chart. Source: ETHUSD on Tradingview
Fusaka upgrade goes live, aiming to increase scalability
On December 3, Ethereum will activate it Fusaka upgradethe network’s second major update for 2025. The upgrade aligns changes to the execution and consensus layers and introduces features aimed at improving Layer 2 and reducing costs.
A key component is PeerDAS, a data sampling mechanism designed to reduce the bandwidth that validators need to verify Layer 2 data. This system aims to reduce validator bandwidth requirements by up to 85% and expand blob data capacity, potentially reducing Layer 2 transaction costs by 40-60%.
Fusaka also increases Ethereum’s block gas limit to 60 million, allowing more transactions per block, and introduces updates to the Ethereum Virtual Machine that streamline the execution of smart contracts. These combined changes are expected to increase the network’s transaction capacity.
Industry interest had increased prior to the upgrade. Major financial players, including Amundi and Fidelity, have recently announced moves into tokenized products built on Ethereum, reflecting the broader institutional activity within the network.
Can Ethereum (ETH) Recover From Oversold Levels?
Ethereum (ETH) last traded around $2,807, with technical indicators pointing to continued bearish momentum. The MACD remains negative, while the Relative Strength Index stands at 32, indicating oversold conditions.
The main support levels are at USD 2,700 and USD 2,500. Failure to hold these zones could deepen the downtrend, while a recovery could push ETH back towards $2,900-$3,000. Open Interest rose 4.3% after the decline, indicating traders are reopening their positions and preparing for higher volatility.
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Whether the Fusaka upgrade can change market sentiment remains uncertain, but its long-term scaling could play a role in Ethereum’s broader recovery.
Cover image of ChatGPT, ETHUSD chart from Tradingview