Ethereum price forms unusual pattern ahead of Fusaka upgrade

Ethereum's price has fallen over the past few months, coinciding with the ongoing cryptocurrency market crash.

Ethereum (ETH) tokens were trading at $3,000, a key support level, on Sunday, down nearly 40% from this year's highs.

Still, there are numerous catalysts for this token that could see its price rise in the coming weeks. One of the main drivers is the upcoming Fusaka upgrade., It will happen on December 3rd of this year.

Fusaka is a significant upgrade that introduces some notable behind-the-scenes features as the network continues to improve. The most notable upgrade is Peer Data Availability Sampling. This allows validators to validate rollup blob data without having to download everything.

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Implementing this feature allows your network to achieve higher throughput while reducing bandwidth and storage needs.

Fusaka also introduces Burkle Trees, predictable blob pricing, historical expiration adjustments, and more. This will help the network continue to gain market share in key industries such as DeFi and the real-world asset tokenization industry.

This growth and continued innovation explains why some prominent investors continue to buy ETH. The most notable is Tom Lee, who has spent billions of dollars through his BitMine Immersion company. Bitmine, backed by top investors such as Cathie Wood and Peter Thiel, has held more than $10 billion worth of ETH tokens in the past few months.

Ethereum price technical analysis

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ETH price chart |Source: crypto.news

Looking at the daily chart, we can see that the ETH price has fallen over the past two months. This crash was primarily caused by a massive liquidation event that cost investors billions of dollars in losses in a single day.

This coin has some notable bearish technicals, including a break below its 50-day and 100-day moving averages. This is a sign that the bears are still in control, as evidenced by the Supertrend indicator.

On the positive side, Ethereum price has formed a huge falling wedge pattern. This is a common pattern consisting of two descending and converging trend lines.

The two lines of the MACD indicator form a bullish crossover, which is a bullish sign. Also, the Relative Strength Index (RSI) is trending upwards, slowly approaching the neutral point of 50.

Therefore, the token may rebound within a few days. If this happens, the token could rally to the major resistance level at $3,500. The bullish outlook will be invalidated if the price breaks below the support at $2,635.

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