Ethereum Gains Momentum with Fusaka Hard Fork Developments
Ethereum (ETH) is making waves in the cryptocurrency market with a 1.53% price increase over the past 24 hours, now trading at $4,356.94. This surge follows a notable 70% jump in 24-hour trading volume, reaching $33.94 billion. Traders and investors alike are keeping a close eye on Ethereum, particularly with the upcoming Fusaka hard fork slated for Q4 of this year, which promises key network improvements.
Why Fusaka Hard Fork Matters
The Fusaka hard fork is set to introduce critical upgrades, including PeerDAS for validator efficiency and adjustments to gas limits. Historically, Ethereum upgrades such as the Dencun hard fork have triggered significant price rallies, with ETH experiencing a 32% surge post-upgrade. This has fostered optimism among market participants, as evidenced by the 27% rise in futures open interest this week.
Active Addresses and Network Participation on the Rise
Ethereum’s network activity is reinforcing its bullish momentum. The number of active addresses has rebounded to 645,000, marking a significant recovery from early August lows and holding well above July’s 439,000. This upward trend in participation indicates renewed demand for the Ethereum network and strengthens the sentiment that this rally is rooted in more than mere speculation.
Large institutional wallets are also accumulating ETH, while whale exchange inflows have remained limited, reducing immediate sell pressure. Moreover, with Fusaka’s final code audit due later this month, investors anticipate further upward momentum as the network gears up for its biggest upgrade of the year.
Technical Analysis: Resistance and Support Levels
From a technical perspective, the ETH price is currently testing key levels of resistance and support. The immediate resistance lies at $4,577, a level that has capped multiple rallies. Successfully breaking through this resistance could propel Ethereum toward the $4,774 zone, bringing it closer to its all-time high of $4,953.73. On the downside, $4,155 serves as a critical support level, with a further drop potentially revisiting $3,967.
Indicators such as the Relative Strength Index (RSI) sit at a neutral 54.3, which suggests the market sentiment has a slight bullish tilt. However, the MACD (Moving Average Convergence Divergence) indicator remains negative, urging caution even as momentum builds.
Preparing for the Breakout
Ethereum appears to be consolidating within a tight trading range, with Bollinger Bands indicating a potential breakout. If ETH convincingly breaks the $4,577 resistance and sustains its active address growth leading up to the Fusaka rollout, a retest of the $4,953 all-time high is increasingly possible in the coming months.
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Stay informed and keep an eye on Ethereum as it moves closer to the Fusaka hard fork. With network upgrades and strong participation metrics, the crypto is poised for what could be another historic rally.
