Ethereum Price Prediction: Gas Limit Reaches All-Time High, Can ETH Ride the Momentum to Break Through $3,470?

With the significant increase in the Ethereum network’s Gas limit and the successful completion of the Fusaka upgrade, the market’s focus has shifted back to ETH’s price potential. According to the latest analysis by Gate Research Institute, ETH’s short-term bullish structure is very strong, with the price closely following the short-term moving averages and showing a clear upward trend.

Ethereum’s price movements are typically driven by a combination of technical upgrades, market sentiment, and on-chain activity.

01 Current Market Performance: Strong Rebound and Key Price Levels

As of December 5, 2025, Ethereum (ETH) has shown remarkable market performance. According to the latest data from Gate Research Institute, ETH is currently priced at $3,218.28, with a 24-hour increase of 6.73%.

From a technical perspective, ETH rebounded rapidly after hitting a low of $2,719.28 on December 2, forming a clear V-shaped bottom structure.

This technical pattern is generally regarded as a strong bullish signal. Currently, ETH’s three key moving averages (MA 5, MA 10, and MA 30) are in a standard bullish alignment, with wide gaps between them, indicating strong upward momentum.

The shift in market structure provides a solid foundation for ETH’s rise. Data shows that ETH balances on exchanges continue to hit historic lows, and sell-side liquidity is rapidly decreasing.

This supply squeeze phenomenon was also seen during Bitcoin’s bull cycles and eventually triggered accelerated price rallies. Furthermore, the ETH/BTC exchange rate has officially broken above the 60-week moving average on the weekly chart, confirming the end of the relative bear market since 2022.

02 Short-term Catalysts: Fusaka Upgrade and Gas Limit Adjustment

The immediate catalyst driving ETH’s recent price surge is the successful implementation of the Fusaka upgrade. This upgrade marks Ethereum’s second major optimization in 2025 and was officially activated on December 3.

The core of the Fusaka upgrade addresses the explosive growth of Layer 2 networks, paving the way for higher TPS (transactions per second) evolution. It includes several key technical improvements, such as introducing Peer-to-Peer Data Availability Sampling, which significantly reduces storage and bandwidth requirements for nodes.

At the same time, Fusaka has significantly increased block capacity and the Gas limit, allowing each block to carry more transactions and data—an especially positive move for Layer 2 batch submissions and Rollup support.

The increase in the Gas limit directly impacts network usage costs and efficiency. A higher Gas limit means each block can process more transactions, alleviating network congestion and reducing users’ average transaction fees.

This change not only improves the utility of the Ethereum network but also enhances its competitiveness as the core infrastructure for decentralized finance (DeFi) and other on-chain applications.

03 On-chain Activity and Institutional Dynamics

Ethereum’s on-chain activity is showing positive signs. According to Glassnode, ETH perpetual contract trading volume dominance versus BTC has reached a historical high, now at 67%.

This indicates rising speculative interest in Ethereum and altcoins, with risk appetite and capital flows shifting comprehensively toward ETH.

Continued institutional inflows are another key support factor. Since July 1, publicly listed companies represented by BMNR have cumulatively purchased 2.9 million ETH (about $13 billion), while ETFs have added another 2.22 million ETH in the same period.

These institutional buys are rapidly changing ETH’s market liquidity landscape. Currently, ETH’s overall institutional penetration rate is 8.74%, still significantly lower than BTC’s 10.89%. This means that if ETH’s institutional holdings reach BTC’s level, there is at least an additional passive demand for 2.6 million ETH.

04 Technical Analysis and Price Predictions

From a technical analysis perspective, ETH is currently facing key resistance near $3,300. According to Gate Research Institute, ETH is likely to continue its trend and challenge this level.

However, considering the small gap between the MA 5 and the price, if short-term momentum weakens, a rapid but brief pullback could occur. As long as the pullback holds above the MA 10 or MA 30, the bullish structure remains intact.

For mid- to long-term price forecasts, market analysts have set targets for different time frames. In the short term, several analysts believe that $4,000 is an achievable target.

Once ETH can firmly break through the key resistance area at $3,150, the path toward $4,000 will become clearer. For the mid-term, some analysts have given even more optimistic forecasts.

Some believe that by the end of 2025, ETH’s target price could reach $11,000. Even more aggressive predictions come from anonymous trader DeFi Dad, who has completely revised his expectations for ETH this cycle, suggesting that the top could appear between $15,000 and $30,000.

05 Market Structure and Risk Factors

The current market structure shows Ethereum is gradually replacing Bitcoin as the core asset in the second half of the bull market. BTC dominance (BTC.D) has dropped from 66% in June 2025 to about 59% currently.

From the perspective of the traditional four-year cycle, this usually signals that the bull market may be entering its second half, with ETH taking the baton to lead the market.

Structural changes in the derivatives market also clearly point to ETH. According to Glassnode, the total open interest of major altcoins (ETH, SOL, XRP, and DOGE) recently reached a new high of $60.2 billion.

This indicates that, in terms of capital allocation, ETH has become the core vehicle for market risk pricing and speculation, while BTC plays more of a “value anchor” role.

Despite the optimistic outlook, investors should remain aware of potential risks. Macro uncertainties—such as Federal Reserve policy shifts and liquidity pressures from Treasury financing operations—may still cause short-term market volatility.

In addition, changes in the regulatory environment, potential technical issues during network upgrades, and sudden shifts in market sentiment are all risk factors that require close attention.

Outlook

The historic increase in Ethereum’s Gas limit acts as a key, unlocking the floodgates for Layer 2 ecosystem growth. Exchange data shows ETH supply is tightening rapidly, and ongoing institutional inflows are reshaping market liquidity.

In the short term, the path for ETH to challenge the key resistance levels at $3,470 and even $4,000 is now clear. On the technical side, the bullish moving average configuration and the strong V-shaped bottom provide solid support.

The market’s baton seems to be passing; as capital shifts from BTC to ETH, Ethereum is not only taking the lead in the second half of the bull market but is also redefining its core position in the global crypto financial ecosystem.