The May rally, which saw a 58% increase, was primarily fueled by the excitement surrounding Pectra. However, the current price action for ETH suggests a different scenario, with a lack of significant movement.
While the overall trend has not yet reversed, derivative data paints a contrasting picture. As of now, the Open Interest (OI) stands at over $17 billion, with a slightly positive Funding Rate indicating traders’ anticipation of an upward movement.
Despite this optimism, there is uncertainty looming over the market – a sentiment reflected in the price chart.
Source: Coinalyze
ETH seems to have found stability around the $3,000 mark following a 43% decline, but the momentum has not shown significant recovery. Indicators like RSI signal exhaustion, while the MACD remains flat without confirming a bullish reversal.
The long-standing year-end target of $7,000, which many analysts were confident about earlier, now appears less convincing given the current situation.
For ETH to reach such levels, it would need to break through the $3,500-$3,800 resistance range and replicate a strong, trend-driven rally similar to the one spurred by Pectra.
Currently, the price chart does not rule out an upward movement, but it also does not support a sudden and sharp increase on its own.
Market Expectations
Recent data from GrowThePie revealed that the network and its L2s achieved a new all-time high of nearly 33,000 TPS, primarily driven by Lighter’s zero-knowledge rollup activity.
Source: GrowThePie
Average daily throughput has also shown a significant increase this year, especially after the recent gas-limit boost from 45 million to 60 million.
Source: X
These developments signify tangible progress in scalability, which Fusaka aims to enhance. However, the translation of this progress into a sustained price surge hinges on the post-upgrade scenario.
If increased capacity results in lower fees, higher user adoption, and a surge in rollup demand, ETH could see a positive impact. Otherwise, the network might just be faster without sparking market excitement.
Closing Thoughts
- Fusaka brings substantial scalability improvements, but ETH needs network activity to translate this progress into a price upsurge.
- If post-upgrade usage and fees see significant enhancement, the token’s value could experience a notable increase.
sentence.
The cat chased the mouse.
The mouse was chased by the cat.