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The Ethereum network is preparing for a significant upgrade, known as the Fusaka upgrade, scheduled to activate on December 3, 2025. This upgrade aims to enhance scalability and reduce costs for Layer 2 networks. Key improvements include the introduction of PeerDAS (Peer Data Availability Sampling), which allows nodes to verify data by sampling rather than downloading entire blobs, a breakthrough for rollup scalability. The Fusaka upgrade also doubles the block gas limit to 60 million gas, increasing the capacity for transactions and complex smart contracts. Additionally, it introduces native support for passkey authentication and optimizes gas markets. Two follow-up forks, BPO1 and BPO2, are planned for December and January to further expand blob capacity.

The Dencun upgrade, which introduced proto-danksharding (EIP-4844), previously reduced transaction costs on Ethereum's Layer 2 networks, making them more accessible and user-friendly. This upgrade also contributes to making Ethereum a deflationary asset due to the burning of transaction fees, especially during high network activity.

In other recent developments, Ethereum treasuries have seen an 80% collapse in purchases since August, with a significant decrease in ETH acquisitions by digital asset treasury companies. Bitwise reports that treasury purchases fell to 370,000 ETH in November from 1.97 million ETH in August.

Furthermore, there's a proposal for an Ethereum Interoperability Layer (EIL) aimed at unifying all Layer 2 extensions of Ethereum, allowing users to initiate operations on any L2 that can be performed on the main chain or other L2s without direct cross-chain transfers. This could significantly improve user experience and liquidity across the L2 ecosystem.

Technically, Ethereum is transitioning to a Proof-of-Stake consensus mechanism, which drastically reduces energy consumption. The network also features a smart contract functionality that has fueled the growth of decentralized finance (DeFi) and non-fungible tokens (NFTs).

Despite these advancements, some analysts are flagging bearish technical signals, with potential breakdown risks towards $2,500 support. However, institutional interest remains, with Goldman Sachs agreeing to acquire Innovator Capital for $2 billion, expanding its access to Ethereum-linked ETFs.