Market Reacts Swiftly to Ethereum’s Highly Anticipated Fusaka Upgrade ⋆ ZyCrypto

Ethereum’s ecosystem entered a new phase last week after the network completed Fusaka, its most significant upgrade of 2025. The rollout delivers major improvements aimed at lowering costs, strengthening security, and giving users a far smoother experience.

Fusaka arrives months after the earlier Pectra upgrade refined staking fundamentals. This latest milestone targets scale and data availability, two areas that have shaped Ethereum’s progress throughout the year.

Now, Fusaka is built on PeerDAS, a data-availability system that allows nodes to verify block data without downloading complete datasets. PeerDAS reduces bandwidth requirements and increases throughput by sampling and reconstructing information through erasure coding.

This capability is especially impactful for Layer 2s, which are known for limited blob space and unpredictable gas costs. With PeerDAS offering up to 8x more data capacity, rollups gain the space they need to deliver cheaper, faster, and more consistent performance.

Moving on, Fusaka introduces protocol enhancements, including a higher block gas limit via EIP-7623 and optimized client performance across Geth, Nethermind, and Erigon.

Months of testnet trials showed stable results under heavier loads, giving developers confidence that the network can support expanding activity without compromising reliability.

The upgrade also includes features such as R1 curve support and pre-confirmations to simplify everyday interactions for users who rely on mobile wallets and dApps that require predictable finality.

Market reaction shows that institutional confidence in Ethereum is growing. Treasury firm BitMine added another $150 million in ETH to its holdings as part of its long-term goal of controlling 5% of the circulating supply.

Meanwhile, ETH rebounded from its recent dip near $2,630 and is now testing the $2,850 to $3,150 range. Analysts note improving short-term averages but still see cautious sentiment as the RSI lingers below 50.

If Ethereum secures this range, traders are watching for a possible move toward $3,650 to $3,700. Failure to hold, however, could reopen a path back to the $2,630 level or even deeper support near $2,400.