AI Shows Best Ethereum Trading Strategy Before Fusaka Upgrade

Ethereum developers have officially set December 3, 2025, as the date for the long-awaited Fusaka upgrade. Traders are already watching closely to see if Fusaka can fuel the next major rally.

The trading strategy that follows was generated by AI using real-time market context, the historical impact of Pectra, and structured prompts designed to filter out human bias. 

The result is a practical, step-by-step plan aimed at helping new investors enter Ethereum ahead of Fusaka without chasing the market or taking on unnecessary risk.

What Is The Ethereum Fusaka Upgrade?

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The Fusaka upgrade is Ethereum’s next major network update. Its main goal is to improve scalability and lower costs for users and developers. 

Specifically, a key feature is PeerDAS (Peer Data Availability Sampling). This allows validators to check only parts of large data blobs instead of downloading them in full. 

So, the upgrade will reduce the burden on hardware and make the Ethereum network more efficient. 

Also, Fusaka will expand blob capacity. It will enable rollups and Layer-2 solutions to post more data at lower costs. 

Together, these changes bring Ethereum closer to its long-term scaling roadmap known as “the Surge.”

Ethereum Investment Strategy Before Fusaka

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1. Understand the Context

• Ethereum trades in the $4,400–$4,600 range in September 2025.
• Historically, Ethereum upgrades (Shanghai, Pectra) created short-term rallies, followed by profit-taking.
• Fusaka focuses on scalability (PeerDAS, more blobs), which directly benefits Layer-2 rollups and reduces transaction costs. That’s a bullish long-term catalyst, but upgrades can also trigger “sell the news” events.

Takeaway: New buyers should enter with structured, phased exposure rather than going all in.

2. Entry Strategy: Phased Buying (Dollar-Cost Averaging)

Since ETH is “expensive” now, new buyers should stagger entries.

Example: $1,000 fund size (adjustable to any amount):

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• 40% ($400): Buy gradually across September–October (before testnet results). Spread into weekly buys to average entry ~ $4,400–4,600.
• 30% ($300): Hold for November. This is when Fusaka hype typically builds. Allocate buys on dips (if ETH retests $4,200–4,300).
• 20% ($200): Keep as dry powder in case ETH dips hard post-Fed meetings or into December.
• 10% ($100): Optional — allocate to a high-conviction Layer-2 token (Arbitrum, Optimism, or Base ecosystem projects), which may rally harder from Fusaka benefits.

Result: You spread risk, catch dips, and reduce regret from chasing tops.

3. Trading Strategy: Core + Swing Approach

• Core position: Keep at least 50–60% of total ETH bought untouched until Q1 2026. This ensures exposure to longer-term upside ($5,500+ if Fusaka adoption narrative plays out).
• Swing position: With the remaining 40–50%, trade around resistance levels.

Example (continuing with $1,000 plan):

• Core holding: $600 ETH, just stake or keep in cold storage.
• Swing trading: $400 ETH. If ETH breaks $4,700 and pushes $5,000, sell 25% ($100) to lock profit. But, if ETH retraces to $4,300, re-deploy that $100 back in. This way, you accumulate ETH over time while still benefiting from rallies.

4. Staking Strategy (Optional for Long-Termers)

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• If planning to hold ETH beyond Fusaka, consider staking ETH (via Lido, Rocket Pool, or directly).
• Current annualized staking yield: ~3–4%.
• For a $1,000 example, staking $600 core ETH generates ~$18–24/year. Small, but it compounds over the years and gives exposure to staking incentives.

5. Risk Management

• Never go 100% in one entry. Even if ETH rallies, buying staggered reduces downside risk.
• Set exit levels: Take partial profit near $5,000–$5,200. Reload if ETH dips to $4,200–$4,300.
• Macro watch: Fed policy shifts, ETF flows, or Bitcoin price corrections could drag ETH. Always keep 10–20% cash buffer.

6. Psychological Edge

• Don’t chase green candles — better to miss the top 5% of gains than get trapped in a 20% correction.
• Treat Fusaka as a multi-month catalyst (Oct → Jan). Patience matters more than trying to time one single rally.

Summary Plan for First-Time Buyers

• Allocate in phases: 40% now, 30% next month, 20% pre-Fusaka, 10% for optional L2 bets.
• Hold a core bag (50–60%) until post-Fusaka, trade swings with the rest.
• Use dips around $4,200–4,300 to scale in, take profits near $5,000+.
• Stake long-term ETH if holding beyond the upgrade.