The 58% surge in May was largely driven by market enthusiasm for Pectra, but ETH now faces a very different setup as recent price action remains subdued.
Although the overall trend has not yet reversed, derivatives data showed a contrast. At press time, Open Interest (OI) exceeded $17 billion. The funding rate was slightly positive, so traders are likely anticipating an increase.
Yet this optimism seems uncertain – the price chart shows why.
Source: Coinalyse
ETH may have found short-term stability near the $3,000 region after its 43% decline, but momentum has not significantly recovered. The RSI showed exhaustion and the MACD flattened without confirming a bullish reversal.
This makes the long-held year-end target of $7,000 (a level many analysts were confident about months ago) much less compelling, as of writing.
For ETH to even attempt such an extension, it would need to reclaim the $3,500-$3,800 resistance range and repeat a strong trend-driven expansion, similar to Pectra’s rally.
Right now, the price chart doesn’t rule out a move higher, but it certainly doesn’t support a parabolic move on its own.
The market wants follow-up
Recent data from GrowThePie revealed that the network and its L2s reached a new all-time high of nearly 33,000 TPS, mainly thanks to by Lighter’s zero knowledge accumulation activity.
Source: GrowThePie
Even the average daily flow has increased significantly this year, helped by the increase in the gas limit from 45 million to 60 million last week.
Source:
All of this points to real, measurable progress in scalability, which Fusaka is intended to accelerate. But whether this translates into lasting price action will depend on what happens after the upgrade.
If higher capacity leads to lower fees, more users, and increasing demand for stacking, ETH could benefit. Otherwise, the network could simply be faster without any market enthusiasm.
Final Thoughts
- Fusaka offers real scalability gains, but ETH needs network activity to turn this progress into higher prices.
- If usage and fees after the upgrade improve significantly, the token may increase.
