Ethereum fell more than 2% in 24 hours, falling below $3,000 after losing the $2,900 support level. The decline triggered massive liquidations that wiped out about $500 million in long positions. The data shows that $79 million of the $106 million in liquidated ETH contracts were long bets.
Trading activity surged during the decline, with daily volume increasing 200% to $33.2 billion. The broader cryptocurrency market also contracted, falling almost 1.2% and losing an estimated $1,100 billion in value in a matter of hours. Bitcoin, SOL, XRP and DOGE followed similar moves lower.
Despite the volatility, some companies have accumulated ETH during the downturn. BitMine Immersion Technologies increased its holdings by 96,798 ETH, breaking away from the trend of companies limiting their risk exposure.
ETH's price gains some momentum on the daily chart. Source: ETHUSD on Tradingview
The Fusaka update is rolling out with the goal of increasing scalability
Ethereum is scheduled to be activated on December 3 Face updatethe second major network update for 2025. The update evens out changes to the execution and consensus layers, introducing features that aim to improve Layer 2 and reduce costs.
A key component is PeerDAS, a data sampling engine designed to reduce the bandwidth needed by validators to verify Layer 2 data. This system aims to reduce validator bandwidth requirements by up to 85% and augment blob data capacity, potentially reducing Layer 2 transaction fees by 40-60%.
Fusaka also raises the Ethereum block gas limit to 60 million, allowing more transactions per block, and introduces updates to the Ethereum virtual machine that improve shrewd contract execution. These combined changes are expected to augment the transaction capacity of the network.
Industry interest increased prior to the update. Major financial players including Amundi and Fidelity recently announced a shift to tokenized products built on Ethereum, reflecting broader institutional activity across the network.
Can Ethereum (ETH) Recover from Oversold Levels?
Ether (ETH) were recently trading around $2,807, with technical indicators pointing to continued declines. The MACD remains in negative territory while the Relative Strength Index is at 32, signaling oversold conditions.
The key support levels are $2,700 and $2,500. Failure to hold these zones could deepen the downtrend, while a rebound could push ETH back towards $2,900-$3,000. Open Interest rose after a 4.3% decline, suggesting investors are reopening positions and preparing for more volatility.
There’s no telling whether Fusaka’s update could change market sentiment, but its long-term impact on scaling could play a role in Ethereum’s broader recovery.
Cover image from ChatGPT, ETHUSD chart from Tradingview
