Ethereum dominance and Bitcoin pair signal possible breakout ahead of Fusaka

Ethereum is retesting key resistance after a correction, with analysts eyeing the December 3 Fusaka upgrade as a potential catalyst for a rally and higher dominance

On Nov. 26, the cryptocurrency experienced a daily surge, retesting the resistance level for the first time in nearly a week, according to trading data. The digital asset has been trading within a tight range amid a market-wide correction that also affected Bitcoin’s (BTC) support levels. Earlier in the week, Ethereum broke above recent trading areas before attempting to retest the next key resistance over two days, ultimately failing to reclaim the level.

Analysts believe Ethereum is heading into a resistance zone

Analyst Ted Pillows noted in a market commentary that Ethereum (ETH) reached a resistance zone and was rejected. Pillows stated that until Ethereum successfully reclaims this level, the probability of a new low remains elevated. However, if the cryptocurrency breaks above this zone with strong volume in the coming days, a rally toward higher resistance could follow, according to the analyst.

Pillows also projected that the altcoin could experience a recovery rally next week, driven by the upcoming Fusaka upgrade. Following the network’s Pectra upgrade in May, Ethereum saw a significant surge, according to historical price data. The Pectra upgrade introduced improvements to increase transaction capacity, enhance efficiency, and reduce system stress. After implementation, the cryptocurrency rallied in the following week and later surged in the third quarter to a new all-time high.

The Fusaka upgrade represents the network’s largest update since The Merge and is scheduled for December 3, according to network developers. The upgrade is expected to address data availability for rollups, one of the network’s most pressing bottlenecks, VanEck explained in an October report. Based on this timeline, Pillows suggested that if Ethereum replicates its post-Pectra performance, the altcoin could surge above major resistance in the coming weeks.

Market analyst Merlijn The Trader stated that Ethereum could see another upward movement soon, as the cryptocurrency is repeating a wave structure pattern observed multiple times since the bear market bottom in mid-2022. “Wave 1: Kicked off the cycle. Wave 2: Is shaking weak hands. Wave 3: Where parabolas form,” the trader stated, noting that Ethereum could be ending its corrective move and potentially rally in the coming weeks. “This pattern printed three times before. Each time, Ethereum went vertical. Now it’s flashing again,” the analyst added.

Michaël van de Poppe highlighted Ethereum’s trading pair against Bitcoin, stating that investors should monitor the chart. Ethereum is retesting a multi-month downtrend line resistance against Bitcoin and could see a breakout upwards in the coming weeks, according to van de Poppe. “This cycle is far from over,” van de Poppe stated.

Analyst Rekt Capital noted that Ethereum dominance continues to occupy an area that served as a consolidation zone before the 2021 rally. The analyst concluded that if dominance maintains itself above current levels, the cryptocurrency should be positioned for higher market dominance over time.