Ethereum Surges Past $3,200 as Fusaka Upgrade and Whale Accumulation Fuel Rally
Gabriel Sebopeng 4 December 2025 17

On Thursday, December 4, 2025, at 4:02 PM UTC, Ethereum broke through the $3,200 barrier for the first time since November, jumping 5–6.29% in a single day. Trading between $3,187.36 and $3,215, the rally marked a staggering 15% surge over just 72 hours — a move analysts say wasn’t just luck, but the result of a perfect storm: a long-awaited network upgrade, massive accumulation by institutional players, and a broader market shift toward digital assets as global monetary policy pivots.

The Fusaka Upgrade: A Quiet Revolution

The catalyst? The Fusaka upgrade, the second major Ethereum enhancement of 2025, which went live at 10:15 AM UTC that same day. Unlike past upgrades that focused on security or consensus, Fusaka targeted scalability head-on with PeerDAS (Peer Data Availability Sampling). This technology allows validators to split transaction data — called "blobs" — into smaller, digestible chunks instead of forcing every node to handle massive batches. The result? Blob throughput jumped to 14 per block, up from just 6 previously.

For everyday users, this meant something tangible: Layer-2 networks like Arbitrum and Optimism saw transaction fees drop by 40–60%. That’s not a minor tweak — it’s the difference between paying $5 to swap tokens and paying $2. For DeFi traders and NFT collectors, this isn’t just convenience; it’s a return to the low-cost, high-speed experience Ethereum promised in its early days.

Shark Wallets and the Quiet Accumulation

While developers celebrated the upgrade, another force was quietly building momentum. According to Santiment’s December 3, 2025 data, "shark wallets" — accounts holding between 1,000 and 10,000 ETH — had amassed over 450,000 ETH in just two weeks, from mid-November through December 3. That’s roughly $1.4 billion in value at current prices.

This came after a brutal sell-off in early October, when 1.3 million ETH were dumped into the market — a move that had sent prices tumbling below $2,600. But since then, the same whales that once sold are now buying back in. "It’s not speculation," said Arslan Butt, a financial analyst at FXLeaders. "This is strategic. These players know Fusaka was coming. They waited for the dip, and now they’re stacking.

Institutional Inflows and Market Sync

The retail crowd wasn’t alone. On December 3, ETH ETFs saw $250 million in net inflows — the largest single-day surge since September. BitMine Immersion, a crypto-focused institutional fund, quietly increased its ETH holdings by 12% over the same period.

And it wasn’t just Ethereum. Bitcoin, trading at $93,200, rose 1.4% on the day and 1.7% for the week. Solana (SOL) joined the rally, up 8% over the same 72-hour window. TradingView’s December 4 analysis titled "Top Crypto Analysis: BTC, ETH, and SOL Move in Institutional Sync" confirmed what many suspected: major players were rotating into multiple high-cap assets simultaneously. The correlation isn’t accidental — it’s a signal that institutional capital is re-entering crypto not as a gamble, but as a strategic allocation.

Why This Matters Beyond the Price Chart

Ethereum’s rally isn’t just about numbers. It’s about validation. After years of scaling debates, regulatory uncertainty, and competition from Solana, Polygon, and others, Fusaka proves Ethereum’s development roadmap still leads the pack. The upgrade didn’t require a hard fork or contentious vote — it was implemented cleanly, with near-zero downtime. That kind of execution builds trust.

Meanwhile, the 190,000 new Ethereum wallets created in a single day — a record, according to 99bitcoins and Coingape — suggests renewed public interest. Not just from traders, but from developers, artists, and entrepreneurs who see Ethereum as the backbone for real-world applications.

Even macroeconomic winds are helping. The U.S. Treasury’s recent liquidity injections, combined with Japan’s $185 billion stimulus package and expectations of Fed rate cuts in early 2026, have pushed investors toward risk assets. Crypto isn’t the only beneficiary — but it’s one of the most responsive.

What’s Next? Targets and Risks

Analysts are already setting new targets. FXLeaders expects $3,300–$3,500 in the next 10–14 days. CryptoTicker sees $3,800 as possible — but only if Bitcoin holds above $90,000 and global liquidity remains strong.

Still, caution lingers. Forex24.pro warned of a potential bearish reversal, citing moving averages that suggest a drop toward $2,265. That’s a 25% decline from current levels — a reminder that crypto remains volatile. But with network usage growing, fees falling, and institutions doubling down, the odds now favor the bulls.

Frequently Asked Questions

How did the Fusaka upgrade reduce Ethereum transaction fees?

Fusaka introduced PeerDAS, a technology that lets validators split transaction data (blobs) into smaller pieces instead of processing them in large batches. This reduces the computational load on each node, allowing more transactions per block. As a result, Layer-2 networks like Arbitrum and Optimism saw fees drop by 40–60%, making everyday crypto use significantly cheaper and faster.

Who are "shark wallets," and why is their activity important?

"Shark wallets" are crypto addresses holding between 1,000 and 10,000 ETH — typically institutional or high-net-worth investors. Their accumulation of over 450,000 ETH in early December signals strong confidence in Ethereum’s long-term value. Unlike retail traders, these actors move in large volumes and often time their buys around major network upgrades, making their behavior a reliable bullish indicator.

Why is Ethereum outperforming Bitcoin despite Bitcoin’s dominance?

While Bitcoin is seen as digital gold, Ethereum is the engine of decentralized applications — DeFi, NFTs, tokenized assets. The Fusaka upgrade directly improved Ethereum’s usability and cost-efficiency, making it more attractive to developers and users. Bitcoin’s rally is largely macro-driven, but Ethereum’s surge is fundamental: better tech, lower fees, and growing adoption. That’s why ETH jumped 15% in 72 hours while BTC rose just 1.4%.

Could Ethereum reach $3,800? What conditions are needed?

Yes — but it requires two things: sustained Bitcoin momentum above $90,000 and continued global liquidity. Analysts at CryptoTicker say $3,800 is achievable if U.S. and global central banks keep injecting capital, as seen with Japan’s $185 billion stimulus. Ethereum’s price will also depend on whether new wallet growth and Layer-2 usage maintain their current pace. If so, $3,800 could be hit by late Q1 2026.

What’s the risk of a sudden drop after this rally?

Short-term pullbacks are always possible — especially if Bitcoin reverses or macro conditions shift. Forex24.pro warned of a potential drop to $2,265 if selling pressure returns. But unlike past rallies, this one is backed by real infrastructure improvements and institutional accumulation, not just hype. A 15–20% correction wouldn’t be surprising, but a crash is unlikely unless global monetary policy suddenly tightens.

How does this affect regular Ethereum users?

For everyday users, it’s a win. Lower fees mean cheaper swaps, faster NFT mints, and more affordable DeFi participation. New wallet creation hit 190,000 in one day — proof that people are returning. If you’ve avoided Ethereum because of high gas fees, now is the time to reconsider. The network is finally delivering on its original promise: a scalable, affordable platform for decentralized innovation.