Ethereum Price Drops Below $4,000 as Fusaka Upgrade Completes Final Testing
Ethereum’s price has fallen below the psychologically important $4,000 mark amid broader market corrections. The decline occurred as ETH recently traded around $3,947, down approximately 5% on the day. This volatility arrives at a critical juncture for the network. The Fusaka upgrade successfully went live on its third and final testnet, Hoodi, clearing the path for mainnet deployment scheduled for December 3.
The timing of this price movement raises questions about market sentiment ahead of one of Ethereum’s most significant protocol updates. Traders and investors now watch closely to see whether the upcoming upgrade will catalyze a recovery or if broader market pressures will continue to weigh on ETH.
Ethereum Fusaka Upgrade Sets December Launch Date
Ethereum developers confirmed during the ACDC 165 call that the Fusaka upgrade will launch on mainnet on December 3, following successful testnet releases throughout October. The rollout schedule demonstrated methodical testing across multiple networks. The upgrade activated on Holesky testnet on October 1, Sepolia on October 14, and Hoodi on October 28.
Fusaka introduces 11 proposals to improve scalability, node stability, and validator performance. The upgrade represents the next major protocol enhancement following Pectra, which launched earlier in 2025. These improvements build on innovations from the 2024 Dencun upgrade, which introduced blobs that significantly lowered layer-2 network gas fees.
PeerDAS Technology Drives Ethereum Scalability Goals
The centerpiece of the Fusaka upgrade is PeerDAS (Peer Data Availability Sampling). Ethereum co-founder Vitalik Buterin has called PeerDAS “the key to layer-2 scaling,” noting it enables a live blockchain where no single node must download full data. This technology represents a fundamental shift in how Ethereum processes information.
PeerDAS could increase blob capacity by over 400%, enabling cheaper and faster layer-2 transactions. The expanded capacity addresses one of Ethereum’s persistent challenges: transaction costs. The software update seeks to cut transaction costs and boost efficiency by streamlining how the network samples and verifies data from layer-2 networks.
Developers shared the BPO (Blob Parameter Override) hard fork plan, which will initially launch without changes to blob capacity. The implementation follows a phased approach. After the first week, the fork will raise the blob target and maximum from 6/9 to 10/15, followed by a second update increasing values to 14/21.
Ethereum Price Correction Tests Market Confidence
The current price decline tests investor confidence ahead of the upgrade. Market analysts note that corrections remain normal during bull cycles. Some traders emphasize that drops from all-time highs should not trigger panic selling. Technical indicators suggest ETH faces critical support levels that could determine near-term direction.
Despite recent price dips, prediction markets show strong belief in recovery to $4,500, signaling confidence in the upgrade’s impact. This optimism reflects expectations that Fusaka will deliver meaningful improvements. The upgrade comes seven months after Pectra, which introduced wallet enhancements and raised validator limits to support more efficient staking.
Institutional interest continues to shape Ethereum’s trajectory. The approval of spot Ethereum ETFs in 2024 opened new channels for investment. These products provide traditional investors with regulated exposure to ETH. Trading volumes and institutional participation through futures and staking products remain key metrics that market participants monitor.
Network Improvements Build on Previous Upgrades
The Dencun upgrade went live in March 2024, enabling blob transactions and boosting Layer-2 scalability. Fusaka extends these capabilities through expanded blob storage and enhanced data sampling. The upgrade maintains Ethereum’s position as the leading smart contract platform while addressing scalability bottlenecks.
Proponents argue Fusaka will allow Ethereum to handle greater transaction volumes efficiently, supporting projections of up to 2.4 million daily settlements on layer-2 networks. These improvements align with Ethereum’s long-term roadmap, known as “The Surge,” which focuses on throughput and resilience.
The full upgrade aims to increase Ethereum’s block gas limit to 60 million, allowing blocks to process more transactions and complex smart-contract activity. Testing confirmed that current node setups can reliably handle higher capacity blocks without risking network stability.
Conclusion
Ethereum faces a pivotal moment as price volatility meets technological advancement. The Fusaka upgrade promises substantial improvements to scalability and efficiency through PeerDAS technology and expanded blob capacity. While current market conditions have pushed ETH below $4,000, the successful completion of testnet deployments positions the network for its December mainnet launch.
The coming weeks will reveal whether technical upgrades can overcome broader market headwinds and restore momentum to Ethereum’s price.
