Daily Crypto Signals: Ethereum’s Fusaka Upgrade Ignites Outperformance Over Bitcoin
The crypto market is showing signs of resilience in early December 2025 as Bitcoin holds above $93,000 and Ethereum recovers following its
Quick overview
- Bitcoin remains resilient, trading above $93,000, while Ethereum recovers post-Fusaka upgrade.
- The CFTC's approval of spot crypto trading and the EU's regulatory expansion are reshaping the market landscape.
- Despite volatility, 95 of the top 100 cryptocurrencies saw gains, indicating ongoing accumulation.
- Ethereum's Fusaka upgrade significantly enhances data capacity and reduces transaction costs, boosting its market performance.
The crypto market is showing signs of resilience in early December 2025 as Bitcoin BTC/USD holds above $93,000 and Ethereum ETH/USD recovers following its landmark Fusaka upgrade. Regulatory developments including the CFTC’s historic approval of spot crypto trading and the EU’s move to expand oversight are reshaping the institutional landscape, while technical indicators suggest both leading cryptocurrencies may be positioning for a decisive year-end move.
Crypto Market Developments
In early December, the cryptocurrency market calmed down after Bitcoin fell below $86,000 for a short time on December 2 due to automatic liquidation cascades. The rise to $93,500 shows underlying strength, as open interest fell from $94 billion to $60 billion in November, which normalized leverage without killing spot demand.
This week, three big things changed the market. The U.S. Commodity Futures Trading Commission (CFTC) approved spot cryptocurrency products for trading on federally regulated futures exchanges. This is a historic decision that Acting CFTC Chair Caroline Pham claimed will protect customers and keep the market honest. The European Commission suggested giving the European Securities and Markets Authority more jurisdiction over crypto-asset service providers in order to close the gap with the United States in terms of competition. Finally, the Fusaka upgrade for Ethereum became live on Wednesday. It lets Layer 2 networks send and receive up to eight times as much data and lowers transaction costs by a lot.
In 2025, the market structure has changed a lot. Spot Bitcoin ETF inflows have created a continual demand from institutions that has changed the way four-year halving cycles work. The broader fear and greed index is still in the “fear” zone at 28, but 95 of the top 100 cryptocurrencies saw gains on December 3. This suggests that accumulation is still happening even though prices are volatile.
Bitcoin Fights Seasonality with New Cycle Dynamics
Bitcoin is trading at over $93,500 as of December 5. This is because it has gone back up above its monthly rolling volume-weighted average price after falling on Monday. Deep liquidity clusters have moved to higher targets, with about $3 billion in short positions set to be liquidated at $96,000 and more than $7 billion at the $100,000 level.
Bitcoin’s performance in December is testing a negative pattern that has been going on for ten years, when losses in November lead to problems in December. However, the structure of the market has changed from earlier cycles, with spot ETF inflows adding structural purchasing. Analysts say that the current phase is like the middle of 2016 or the end of 2019, when risk assets were stronger even if the data was mixed. Key levels are $86,000 support and $96,000 resistance. If the price stays above the latter, it might move toward $100,000.
Ethereum’s Fundamentals Strengthen After Fusaka Upgrade
Ethereum is trading at about $3,170 on December 5, which is a stable price after the Fusaka upgrade on December 3. The improvement makes the data capacity eight times bigger and cuts the cost of transactions on Layer 2 by 40% to 60%. After the update, ETH shot up more than 9% to break $3,200, beating Bitcoin. In the last two weeks, spot ETH ETFs brought in $360 million, whereas Bitcoin ETFs brought in $120 million. This shows that money is moving into Ethereum.
Ethereum broke through a structure over $3,200, and the ETH/BTC pair broke beyond a 30-day consolidation zone. Analysts say that if Bitcoin stays over $94,000, Ethereum might go up to $3,650, with the possibility of going up to $3,900, which is around 20% more. During November’s drop below $2,700, retail buyers jumped in quickly, but a controlled retreat may happen before a long-term rebound starts.
- Check out our free forex signals
- Follow the top economic events on FX Leaders economic calendar
- Trade better, discover more Forex Trading Strategies
- Open a FREE Trading Account
Save