Ethereum (ETH +4.15%) is up 3.4% in the last 24 hours as of 1:54 p.m. ET on Wednesday. The move comes as the S&P 500rose 0.4% and the Nasdaq Composite gained 0.2%.

Ethereum‘s Fusaka upgrade goes live today, the latest major update to the coin’s network. In the past, similar overhauls have led to a rally.

Ethereum

Today’s Change

(4.15%) $124.58

Current Price

$3126.99

Ethereum is getting an update today

The Fusaka update introduces several key improvements, including an increased gas limit that will expand transaction capacity. Critically, the upgrade refines how Ethereum interacts with layer-2 networks — blockchains that work on top of the mainnet. Layer-2 solutions greatly enhance Ethereum’s ability to scale efficiently, but Fusaka is designed to make these interactions even more cost-effective. That’s key for Ethereum’s continued dominance as the smart-contract blockchain of choice.

Image source: Getty Images.

The last major update was followed closely by a 30% rally. It seems traders are anticipating a similar move when Fusaka goes live.

Will Fusaka be enough?

While past updates were significant catalysts, Fusaka arrives at a very different time in the market. I’m not convinced it will be enough to turn Ethereum’s months-long slide around. That being said, in the long run, I do think Ethereum is a solid addition to a more risk-tolerant portfolio.