Ethereum Cuts Its Fees By 70%: Are We Finally Going To See A Price Surge?

Transaction fees on the Ethereum network have dropped by 70%, from 23 million to 7.5 million dollars per day. This spectacular drop occurs in a context of major transformation for the blockchain, with the announcement of two significant updates planned for April 2025.

Ethereum eliminates 70% of its fees before its major update

Transaction fees on Ethereum have fallen by more than 70% this week, dropping from 23 million to 7.5 million dollars daily. This significant drop results from the increase in the gas limit, allowing for more transactions to be processed per block. This technical evolution comes at an opportune moment as the network prepares to deploy Pectra, its most important update to date.

The history shows that a decrease in fees generally stimulates network activity. Previous drops in 2021 and mid-2023 had led to a notable increase in the number of active addresses and daily transactions.

The Pectra update, scheduled for April, is expected to amplify this trend by doubling the capacity of data blobs, increasing it from three to six, thereby significantly improving the network’s scalability.

The first signs of this transformation are already visible: ETH reserves on exchange platforms have decreased by nearly one million units in ten days, falling from 19.7 to 18.8 million ETH. This movement reflects a trend among investors to hold onto their assets rather than sell them.

Promising prospects despite technical challenges

The timing of this drop in fees aligns perfectly with the schedule of Ethereum’s major updates. In addition to Pectra, the Fusaka update is also scheduled for April 2025, aiming to optimize the process of including transactions. These improvements respond to a pressing market demand, notably expressed by the venture capital firm Paradigm.

However, Ethereum faces persistent technical challenges. The price of ETH remains down by 1.1% for the year, contrasting with the performances of Bitcoin (+89.6%) and Solana (+68.7%). The technical resistance around 2,800 dollars remains difficult to surpass, with an RSI of 39.34 indicating oversold conditions, but without significant upward momentum.

To realize its potential, Ethereum will need to capitalize on these technical improvements and the reduction in fees to stimulate adoption and activity on its network. The synergy between the increased efficiency of the network and the reduction in costs creates a favorable ground for a new phase of expansion. If these conditions persist, a significant price appreciation could follow.