- Ethereum is under pressure near $2,800 as declining on-chain activity and institutional outflows weigh on price.
- However, upcoming gas limit upgrades aim to boost speed, lower fees, and strengthen the network long term.
Ethereum network upgrades approaches while its price hovers near a crucial support zone. The coin has slipped about 4.2% in the past day, trading just above $2,800 amid rising sell pressure and weakening on-chain activity.
Network Upgrades Aim to Boost Speed and Capacity
Ethereum developers are preparing a major enhancement that could significantly improve transaction throughput. Following the blob parameter-only hard fork scheduled for January 7, plans are underway to increase the network’s gas limit from 60 million to 80 million units. This change would enable more transactions and smart contract activity per block, thereby easing congestion and potentially reducing fees.
According to developers, two client level optimizations must be finalized first. These include enabling the max blobs flag on the consensus layer and introducing partial blob responses on the execution layer. Once in place, the upgrade could mark another step in Ethereum’s aggressive scaling roadmap.
Over the past year, the gas limit has already doubled from 30 million to 60 million through a series of increases. The broader goal remains bold, with the developer community targeting a gas limit of 180 million by the end of 2026. Such progress reinforces Ethereum’s role as a secure settlement layer, even as short-term price action struggles.
On-Chain Activity and Institutional Flows Weaken
Despite the encouraging technical outlook, network engagement has declined. Weekly active addresses have fallen to roughly 324,000, down from nearly 440,000 earlier in the quarter. Transaction counts have also slipped to mid-year lows, pointing to reduced participation from both retail and institutional players.
Institutional sentiment has further cooled due to sustained outflows from U.S. spot Ethereum ETFs. Data shows more than $224 million exiting these products in recent weeks, largely from BlackRock’s ETHA fund. Since mid-December, total net assets across U.S. spot ETH ETFs have dropped by over $3 billion, suggesting institutions are trimming exposure rather than buying the dip.
Large holders have added to the pressure, with whale wallets offloading more than 28,500 ETH, valued above $80 million. These sales followed a sharp 12% decline last week that triggered liquidations exceeding $200 million.
Key Technical Levels Under Scrutiny
From a technical standpoint, Ethereum remains below key moving averages and within a broader downward trend. The price recently failed to reclaim resistance near the 20-day exponential moving average around $3,066. If selling continues, support near $2,716 and $2,623 could come into play.
For a stronger recovery signal, Ethereum would need to regain $3,350. A decisive move above that level could open the path toward $3,659 and $3,918. Until then, the market appears set for further testing, even as network upgrades lay the groundwork for Ethereum’s next phase.
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