Ethereum has garnered attention after achieving a notable milestone in network activity, highlighting a 244x scaling level attributed to Layer 2 (L2) networks. This achievement comes ahead of the highly anticipated Fusaka upgrade scheduled for December 3, which has traders closely monitoring the asset”s price movements.
In recent updates, data reveals that Ethereum has reached new heights in average transactions per second (TPS), averaging approximately 5,600 TPS. This surge in activity primarily stems from the increasing utilization of L2 networks, which facilitate a significant number of transactions that settle back on the main Ethereum chain. Analyst Joseph Young emphasized that the 244x scaling factor indicates one transaction on the main chain now corresponds to 244 transactions on L2, reflecting robust growth in actual usage.
Despite this spike in network activity, the price of Ethereum has not demonstrated a corresponding increase. Currently, the asset trades near crucial support levels, specifically around the $3,100 mark, indicating a lack of decisive market momentum. Traders have noted that while network usage is on the rise, the cryptocurrency market has yet to respond in a significant manner to these developments.
Merlijn The Trader pointed out that the upcoming Fusaka upgrade could enhance network performance, drawing parallels with previous upgrades that spurred a 58% price increase. The forthcoming changes aim to improve scaling capabilities, accelerate transaction speeds, and bolster overall network efficiency. Developers have indicated that these upgrades are designed to further capitalize on the increased activity within L2 networks.
As the Fusaka upgrade approaches, analysts are keenly observing its potential impact. Market participants often anticipate heightened interest in the Ethereum network prior to upgrades, although substantial price movements may not be immediate. Currently, Ethereum is priced at $3,168.34, and traders are hopeful for a positive market reaction post-upgrade.
However, caution prevails among analysts like Ted Pillows, who notes the asset”s recent performance within a narrow trading range. He observed that Ethereum recently touched the $3,100 support level, followed by a slight recovery that lacked strong buying momentum. Pillows warns that a drop below the $3,000 threshold could trigger further selling pressure and potentially a liquidity sweep in the lower ranges.
Despite the recent stability in Ethereum“s price, many analysts maintain a long-term positive outlook, contingent upon the asset holding key support levels. The current disconnect between rising network activity and stagnant price levels is not unprecedented, and the market”s next move will likely hinge on the strength of overall market conditions and the outcomes of the Fusaka upgrade.
Traders are advised to closely monitor both the network”s performance and market sentiment as the Ethereum ecosystem prepares for its next significant developmental phase.
