The Ethereum Fusaka upgrade is now active and marks one of the most significant technical changes for the network in 2025. Fusaka introduces PeerDAS, increases the gas limit on Layer 1, and prepares Ethereum to process more transactions with lower fees. At the same time, the price of Ethereum reacts with a moderate rally and technical signals that many compare to the pre-Pectra phase.

In this analysis, we review how Fusaka works on a technical level, what it means for Ethereum's scalability, what is happening with the price of ETH after the activation, and which levels are closely monitored by traders tracking the market movement.

What is the Fusaka upgrade of Ethereum and why is it important for scalability?

The Ethereum Fusaka upgrade, activated just a few minutes ago, is an update focused on EIP-7594 and the PeerDAS system, a form of "data availability sampling" that allows nodes to verify that a block is complete without downloading it completely. In practice, this increases the network's capacity while maintaining security and decentralization.

fusaka

— vitalik.eth (@VitalikButerin) December 3, 2025

Currently, Ethereum processes between 1.3 and 1.8 million daily transactions and accumulates over 73 billion dollars in value locked in DeFi. With Fusaka, Layer 1 increases the gas limit from 45 to 60 million units, creating additional space for transactions and data.

Additionally, it introduces an R1 signature precompilation that reduces costs and simplifies the use of access keys by developers in Ethereum applications.

fusaka has finalized 🦓!

huge congrats to everyone who worked on the upgrade, massively improving Ethreum's capacity and expanding its feature set, without compromising on security ❤️‍🔥 https://t.co/GTKIjZDhK2

— timbeiko.eth (@TimBeiko) December 3, 2025

For L2 and Layer 2 rollups, Fusaka is even more relevant. PeerDAS increases the available space for blobs and prepares gradual capacity increases in future forks focused solely on data. The goal is clear: to maintain very low fees on networks like Arbitrum, Base, or Optimism, even if demand continues to grow.

The Ethereum Foundation itself insists that this path is slower than scaling using data centers, but preserves the decentralization that defines the network.

The main risk recognized by developers is that it is new software deployed in production for the first time. Therefore, capacity increases will be progressive.

fusaka has finalized 🦓!

huge congrats to everyone who worked on the upgrade, massively improving Ethreum's capacity and expanding its feature set, without compromising on security ❤️‍🔥 https://t.co/GTKIjZDhK2

— timbeiko.eth (@TimBeiko) December 3, 2025

Even so, the message sent to the market is clear: Ethereum seeks predictable and low fees in the long term, creating a stable environment for the development of new categories of applications.

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Ethereum Price After Fusaka: similarities with Pectra and key ETH levels

While the technical part focuses on PeerDAS and the scalability of Ethereum, the market tracks the price of Ethereum minute by minute. ETH is trading at $3,164 after increasing 5% in the last 24 hours and has accumulated a rally of over 13% since December 1, although it is still down more than 17% in the last month.

The pattern resembles what happened before the Pectra upgrade in May 2025, when Ethereum rose 56% in just seven days.

In the charts, a classic bullish divergence is observed: between November 4 and December 1, the price marked a lower low, while the RSI made a higher low. This setup generally indicates that sellers are losing strength, even if the chart still looks weak, paving the way for a possible trend change if buying volume appears.

On-chain data also shows movement in large wallets. The number of addresses with at least 1 million dollars in ETH increased from 13,322 to 13,945, a rise of about 4.7%. This implies, at a minimum, around 623 million dollars additional in the hands of large investors, a signal that the market generally interprets as accumulation before or during relevant technical events.

However, the key lies in a very specific cost area. The base cost distribution places the largest cluster of supply between $3,154-$3,179, exactly where the chart marks strong resistance at $3,166.

Only a daily close above this level would indicate that buyers have absorbed this supply and would pave the way towards $3,653. If the movement replicates the Pectra extension, a 56% rise from the December lows would project a target around $4,262, coinciding with a major historical peak.

In the bearish scenario, the ETH structure weakens below $2,996. Losing this area exposes $2,873 as the next support and, if selling pressure increases, $2,618 as the lowest level to be observed.

Meanwhile, the price behavior around $3,166 will be the barometer that indicates whether Fusaka acts as a mere temporary catalyst or the beginning of a new bullish phase.

In summary

The Fusaka upgrade of Ethereum marks a decisive step towards a more scalable network, with PeerDAS, more gas on Layer 1, and better conditions for rollups on Layer 2. The goal is clear: to ensure low and predictable fees that enable a new wave of applications on Ethereum.

At the same time, the price of Ethereum reacts with a moderate recovery, supported by technical divergences and accumulation in large wallets. The outcome will depend on whether ETH can close strongly above $3,166. Until then, Fusaka is standing out as a technical inflection point whose total impact will be measured in the coming months.

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The article Ethereum targets $3,200 after Fusaka activation: what to expect? was first seen on BeInCrypto Brazil.