Ethereum has announced that EIP 1559 will be a feature that will soon be brought to the blockchain network.
EIP 1559 will be a major transformation for the network, as it will significantly decrease the amount of outstanding transaction fees users will have to pay to use the Ethereum network. With the reduced supply in Ether, this will lead to increased prices for the cryptocurrency, as demand rises.
EIP 1559 is to be implemented sometime in July or August. Instead of an approximate price for transacting on Ethereum, network users will be given a base fee. The base transaction fee will be burned on the network, which means that Ethereum’s supply will decrease and Ethereum’s demand will go up due to scarcity and demand.
Upon the announcement that EIP 1559 proposal has been approved, Ethereum’s price on the market also benefitted and surged. Will Ethereum retest its all-time high of $2040 in the short-term?
Ethereum (ETH) Price Analysis
Source: ETH/USD 4-Hour via TradingView