Ahead of Fusaka Upgrade: Ethereum Forms Bullish Pattern

Ethereum slipped to $2,803 in the past 24 hours. But even with the pullback, analysts say Ethereum is quietly forming a bullish reversal pattern ahead of Tuesday’s major Fusaka upgrade, one of the most important updates since the Merge.

After touching a low of $2,725 yesterday, ETH has already bounced back to around $2,811, showing early signs of recovery as traders position themselves for tomorrow’s upgrade. At the same time, big institutions are still buying more Ethereum, which suggests that there is more confidence beneath the market noise.

Macro Fear and Liquidations

Ethereum’s own fundamentals weren’t to blame for the recent drop. Instead, global markets became less willing to take risks after Japan’s 10-year bond yields rose to a 17-year high of 1.88%, which made people worry about rate hikes. This made people all over the world sell stocks and crypto. In just 24 hours, more than $536 million in crypto positions were sold, including $251 million in Bitcoin and $111 million in Ethereum longs. Ethereum dropped below a key pivot point at $2,839, which put short-term technical pressure on it.

Ethereum’s close relationship with tech stocks which is about 0.87 with the Nasdaq made it very sensitive to the global pullback. The Crypto Fear & Greed Index fell to 16, which means “Extreme Fear,” and the funding rate for ETH turned slightly negative, which means that people are betting on the market going down.

Derivatives Show Leverage 

Even as the price dropped, Ethereum’s open interest surged by $654 million, showing traders added more leveraged positions. Normally that increases the risk of more liquidations. But technical indicators show something important: Ethereum is now oversold. RSI sits at 33.4 and Stochastic RSI is at 28.5. Historically, these levels have triggered fast recoveries including the 140% rally Ethereum saw in Q1 2025 from a similar setup.

Analysts say that when open interest rises while price falls, it often sets the stage for a violent reversal. The key danger zone remains below $2,750, but the bounce back to $2,850 today shows buyers are returning. With the Fusaka upgrade just one day away, traders say the recovery could strengthen further.

Ethereum’s on-chain data shows strength despite price volatility, 1.2 million daily active addresses was recorded up by 7% comapred to last month. A long-inactive ICO whale staked 40,000 ETH which is about $112 million. Trading volume surged to $29 billion, 42% above the month-long average

Meanwhile, BitMine Immersion Technologies now holds 3.73 million ETH, more than 3% of the total supply. The company has been steadily buying ahead of the upgrade, calling Ethereum “a generational investment.” This large-scale accumulation points toward long-term confidence, even as short-term traders react to macro news.

Fusaka Upgrade: Biggest Milestone Since the Merge

Ethereum developers say the Fusaka upgrade, going live on December 3, is the network’s largest update since the Merge in 2022.

Fusaka introduces several improvements aimed at scaling Ethereum:

1. Bigger block capacity

Blocks will carry more data, allowing more transactions and rollup activity.

2. Improved data availability

PeerDAS will let validators handle data more efficiently, speeding up the network.

3. Lower costs for Layer-2 networks

Rollups will benefit from cheaper and smoother data processing.

Fusaka gets Ethereum ready for future upgrades that will make it easier for everyone to use. Developers say that the upgrade is on track and that testnets are working well. A lot of analysts think that the upgrade could cause a big rise, especially since ETH is already oversold and showing signs of recovery.

Final Thoughts

Ethereum is making a bullish reversal pattern, bouncing from $2,700 to $2,850 just before Fusaka, even though global markets are putting pressure on it.

Analysts say that Ethereum may be getting ready for a bigger rise in December because institutional buying is going up, the network is strong, and the biggest upgrade goes live tomorrow.

Also Read: $1.07B Flows Into Digital Asset ETPs, Boosted by US Rate-Cut