Key Takeaways
Is Ethereum Facing a Potential Supply Crisis?
Nearly 2 million ETH are lined up to be unlocked, while foreign exchange reserves have fallen to a three-year low.
Will the Fusaka upgrade affect the price?
Possibly. The upgrade arrives on December 3, and previous upgrades like Pectra matched a 58% ETH rally.
Nearly 2 million Ethereum [ETH] are on the move – not into, but out of the strike – just as currency balances are hitting new lows. With Fusaka arriving in December, Ethereum may be preparing for one of its big swing phases!
A huge queue forms
Ethereum is headed for a major supply shift. Validator exit queue was stacked, with nearly 2 million ETH scheduled to be unlocked over the next 35 days.
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The queue has risen from near zero levels to over 2.5 million ETH at its peak, making this the largest pending withdrawal wave since staking began. Yet none of this ETH has left the system yet. It’s just waiting in line.
At the same time ETH Exchange Reserves have fallen to 15.9 million ETH, the lowest in more than three years.
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A large batch of ETH is about to become liquid. At the same time, currency balances continue to shrink. This increases the chance of a supply shock in the short term.
All eyes on Fusaka
Ethereum’s next big milestone arrives on December 3, and it looks like the market is preparing for it.
The Fusaka upgrade focuses on three core areas (L2 scalability, transaction speed, and validator performance), building directly on the improvements seen in Shanghai and Dencun.
So far, upgrades have acted as a catalyst: the previous Pectra upgrade coincided with a rally of 58%.
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Fusaka is expected to deliver even broader efficiency gains, including lower gas costs and faster L2 throughput, both of which boost network usage metrics.
With the huge queue and the potential for a supply crisis, it will be interesting to see whether structural improvements can reinforce the tightening.
The upgrade comes at a critical time and the impact on performance will likely determine whether Ethereum enters 2026 with a bang.
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