Ethereum: Can Fusaka offset selling pressure from a 2mln ETH unlock?

Key Takeaways

Is Ethereum facing a potential supply squeeze?

Nearly 2 million ETH are queued to unlock while exchange reserves have dropped to a three-year low.

Will the Fusaka upgrade impact price?

Possibly. The upgrade arrives on December 3, and past upgrades like Pectra aligned with a 58% ETH rally.

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Nearly 2 million Ethereum [ETH] are on the move – not in, but out of staking – just as exchange balances hit new lows. With Fusaka arriving in December, Ethereum might be preparing for one of its big swing phases!

A huge exist queue builds

Ethereum is heading toward a major supply shift. Validator Exit Queue was stacked, with nearly 2 million ETH scheduled to unlock over the next 35 days.

The queue has gone up from near-zero levels to above 2.5 million ETH at its peak, making this the largest pending withdrawal wave since staking began. Yet none of this ETH has exited the system yet. It is simply waiting in line.

At the same time, ETH Exchange Reserves have fallen to 15.9 million ETH, their lowest point in more than three years.

A large batch of ETH is about to become liquid. At the same time, Exchange Balances keep shrinking. This increases the chances of a near-term supply shock.

All eyes on Fusaka

Ethereum’s next major milestone arrives on the 3rd of December, and it seems like the market is preparing itself for it.

The Fusaka upgrade targets three core areas (L2 scalability, transaction speed, and validator performance), building directly on improvements seen in Shanghai and Dencun.

So far, upgrades have acted as catalysts: the previous Pectra upgrade coincided with a 58% rally.

Fusaka is expected to deliver even broader efficiency gains, including lower gas costs and faster L2 throughput, both of which strengthen network usage metrics.

With the huge unstaking queue and potential for a supply crunch, it will be interesting to see whether structural improvements can amplify the tightening setup.

The upgrade comes at a critical time, and its performance impact will likely determine whether Ethereum enters 2026 with a bang.