Ethereum Price Holds Above $3,800 as Near-Instant Transactions Meet Scalability Upgrades
Ethereum (ETH) is trading above $3,800 at the time of writing. It has been pretty stable over the past 24 hours, even though there was a lot
Quick overview
- Ethereum is currently trading above $3,800, showing stability despite recent volatility from a significant wallet migration by the Ethereum Foundation.
- The Foundation's wallet transfer led to nearly $700 million in profit realization, with a notable increase in the movement of previously dormant tokens.
- Technical analysis indicates that Ethereum is at a critical support level around $3,790, with potential downside risks if this level is breached.
- In the long term, Ethereum is making technological advancements, including faster transaction times, while major Layer-1 blockchains are increasingly adopting Ethereum Layer-2 solutions.
Ethereum ETH/USD is trading above $3,800 at the time of writing. It has been pretty stable over the past 24 hours, even though there was a lot of volatility when the Ethereum Foundation moved 160,000 ETH worth about $650 million to a new multisig wallet on Tuesday.
Foundation Activity Sparks Market Jitters and Massive Profit Realization
Even though the Foundation swiftly made it clear that this was just a normal wallet migration and not getting ready to sell, the market didn’t like it. Investors followed previous trends where Foundation activity usually leads to distribution, which led to nearly $700 million in profits being realized within 24 hours of the transfer.
Data from Santiment backs up the surge in profit-taking. The Age Consumed measure for ETH shows a big jump, which means that a lot of previously dormant tokens are moving. According to Coinglass statistics, Ethereum experienced $169 million in futures liquidations over 24 hours, with long positions making up $119.1 million of that.
The Foundation has been doing more than just managing wallets lately. As part of its treasury management plan, which aims to invest 15% of its money each year and slowly drop to 5% over five years, it put 2,400 ETH and $6 million into the DeFi lending protocol Morpho last week.
ETH/USD Technical Analysis: Critical Support Zone Under Pressure
Ethereum is holding steady in a key area that may decide where it goes in the fourth quarter. Analyst Luca said that ETH is now above a higher timeframe support range that used to be strong resistance in 2024. This is a big change in the structure of the market. This level is close to the Weekly Bull Market Support Band near $3,790, which has been a good support level in the past few months.
ETH did, however, be turned down at the $4,100 resistance level. It then briefly went below $3,800 before finding support along a downward trendline just above the 200-day Exponential Moving Average (EMA). Both the RSI and MACD indicators are still below neutral levels, which means that bearish sentiment will continue to be strong in the foreseeable future.
Key levels to watch:
- A decisive daily close below $3,790 would invalidate the bullish structure and likely trigger a cascade toward the 200-day EMA at $3,470
- Failure to hold $3,470 opens the door to $2,850—representing approximately 25% downside
- On the upside, ETH must flip $4,100 resistance to support before targeting the “golden pocket” between $4,200-$4,400
Ethereum Fusaka Upgrade: 200-Millisecond Transactions on Mainnet
Even though the pricing is uncertain in the short term, Ethereum is still making progress in technology. Primev’s FAST RPC technology can now complete transactions in less than 200 milliseconds, which is as fast as high-performance blockchains like Sui. Murat Akdeniz, the founder, showed a MetaMask transfer that was preconfirmed in just 377 milliseconds after more than two years of work.
But FAST RPC hasn’t been proven on the same scale as well-known suppliers like Infura, which serves more than 400,000 builders, or Alchemy, which handles more than $150 billion a year. Before a lot of people start using the technology, it needs to show that it works even when the network is very busy.
L2 Convergence: Major Chains Embrace Ethereum Settlement
The most important long-term change may be that big Layer-1 blockchains are moving to Ethereum Layer-2 solutions faster and faster. Celo cut security expenditures by 99.8%, from $6.9 million a year to only $13,200, while still keeping the system working. Ronin sent $35 million in staking prizes to developer incentives while handling 350,000 active addresses every day across 1,000 games.
The next Fusaka update will make the blob capacity eight times bigger, which will lower the cost of L2 transactions even more. James_gaps from the Ethereum Foundation says that the economic reason for staying an independent EVM L1 is unclear when you may pay Ethereum a little amount of money to handle security.
Ethereum Price Outlook: Cautious Near-Term, Constructive Long-Term
The current scenario predicts that ETH will trade in a band between $3,700 and $4,200 as it gets used to the recent volatility. To keep the structure, bulls need to protect the $3,790 Weekly Bull Market Support Band. A strong move above $4,100 might start a rise toward $4,500-$4,800, while a closing below $3,790 makes it more likely that the price will test $3,470 or lower.
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