Ethereum Trades Under $4,000 as Fusaka Upgrade Nears December Deployment
Ethereum (ETH) is currently trading around $3,800, down more than 1.7% in the last 24 hours. It is the second-largest cryptocurrency and is
Quick overview
- Ethereum is currently trading around $3,800, down over 1.7% in the last 24 hours, and is at a critical price level that could determine its future trajectory.
- Technical analyst Nik Patel identifies $4,093 as a key resistance level, with a potential drop to $2,850 if it fails to hold above $3,700.
- Corporate treasuries are accumulating Ethereum during this price weakness, with significant purchases from companies like SharpLink Gaming and Bitmine Immersion Technologies.
- The upcoming Fusaka upgrade, set to launch on December 3, aims to enhance network efficiency and security, potentially impacting Ethereum's price movement.
Ethereum ETH/USD is currently trading around $3,800, down more than 1.7% in the last 24 hours. It is the second-largest cryptocurrency and is currently in a technically dangerous zone that could affect its path until the end of the year. ETH is at a make-or-break point at several important price levels, with institutional buying speeding up and a big network upgrade coming up soon.
Critical Technical Levels Define Near-Term Fate
Nik Patel, a technical analyst at Ostium Labs, says that $4,093 is the key level that will determine what Ethereum does next. Patel said in his market report on October 10 that ETH needs to get back to this level right now and not turn it into resistance on lower timeframes, or else there might be “another flush of the lows towards the 2025 open.”
The weekly chart indicates that Ethereum dropped sharply at the beginning of August but stayed above prior weekly lows and trendline support. This made for an inside week that ended slightly below the significant $4,093 pivot. If buyers can hold this level, Patel thinks that last week’s price action will represent the quarterly low. For prices to rise to all-time highs and beyond, $4,400 needs to turn into support.
The bad scenario is just as clear-cut, though. Patel has set the weekly invalidation level at $3,700. He warns that if the price drops below this level, the yearly open will be watched as “last-stand support” for the bullish structure. If it fails at that level, it may lead to “a much bigger unwind back into $2,850,” which would be a drop of almost 29% from where it is now.
Daily Structure Requires Momentum Confirmation
Ethereum showed signs of losing momentum on the daily chart as it fell below recent lows. Last week, it formed a higher-low pattern that must now be defended to keep the market structure bullish. Patel wants the price to make a higher-high above the mid-range at $4,352 and then a higher-low above $4,093 before it tries to break out and reach new highs.
A trendline breakout, a flip of the all-time high anchored VWAP into support, and the daily RSI rising above 50 are all important confirmation indications. If these things happen, Patel thinks “a move into $4,950 very quickly, followed by price discovery in November.”
ETH/BTC Pair Shows Relative Strength Potential
Ethereum seems to have hit its lowest point in the fourth quarter against Bitcoin after being turned away at trendline resistance and then going back to the yearly open, where it found support. Patel thinks that the pair’s quarterly bottom has developed around 0.0319–0.0320. If it goes above 0.0417, it will be able to go toward 0.055, which would be a big increase in relative strength.
The daily ETH/BTC chart shows that the price has returned around 0.036 as support after hitting a low of about 0.0319. If the price flips from 0.0379 to regained support, it might mean that the trendline is about to break, which could push the pair over 0.0417 resistance and toward 0.049–0.055. On the other hand, turning the 0.0293–0.0319 confluence zone into resistance would be “very bearish” for how Ethereum does compared to other cryptocurrencies.
Corporate Treasuries Accumulate During Price Weakness
Technical traders keep an eye on important support levels, while corporate Ethereum treasury tactics keep buying up more and more. After raising $76.5 million in financing, SharpLink Gaming bought 19,271 ETH at an average price of $3,892, bringing its total to 859,853 ETH (about $3.5 billion). Since starting its treasury approach in June, the company has made 5,671 ETH in staking rewards, which is almost $23.25 million.
Bitmine Immersion Technologies acquired another $250 million in ETH on Monday, raising its total holdings to almost 3.24 million tokens worth more than $13 billion. The corporation now owns 2.74% of all ETH and wants to acquire 5% of it. Tom Lee, the chairman of Bitmine, said that the current “price dislocation” is a “good risk/reward” opportunity.
Data from Strategicethreserve.xyz shows that 69 Ethereum treasury businesses now possess a total of 5.74 million ETH. These proof-of-stake assets make money passively through staking dividends.
Fusaka Upgrade Advances Toward December Mainnet
Ethereum’s technical setup is getting a boost from the fact that the network is in the last testnet phase of its Fusaka upgrade, which is due to go live on the mainnet on December 3. The update lowers the maximum amount of gas that a single transaction can use from 45 million to about 16.78 million units. It also raises the maximum amount of gas that a full block can use to 60 million.
The goal of this update is to make blocks more efficient, lower the danger of denial-of-service attacks, and set the stage for parallel execution in future upgrades. The change is already live on the Holesky and Sepolia testnets. The Hoodi testnet will go live on October 28.
Ethereum Price Prediction: Binary Outcome Ahead
According to Patel’s analysis, Ethereum will have one of two possible outcomes in the next few weeks. His base case says that acceptance will go back above $4,093 next week, then close above $4,400 in October, and then go to new highs above $5,000 in early November, which will be “a very strong month for ETH.”
The bearish option is clear: if the price doesn’t go back above $4,093, closes below $3,700 for the week, and then loses yearly open support, it might fall back to $2,850. This would be a big breakdown of the post-2024 rise structure.
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