Ethereum Gas Fees Continues to Increase Despite Recent London Hard Fork
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Predictions by Ethereum (ETH) enthusiasts that the London Upgrade would solve the network fees problem plaguing the blockchain have come to naught, as gas fees are slowly increasing to new highs.
According to a recent report by Glassnode, the average fee on the network, based on a seven-day moving average, has reached a three-month high of 0.008 ETH or $26.
The network fees on the ETH blockchain remain a significant market concern, emerging from the congestion on the network. Many believed that the recently implemented London Hard Fork would solve this issue in the meantime as developers work on the ETH 2.0 upgrade. However, the problem only persisted after the hard fork.
Two primary triggers of the gas fee surge are the growth of the non-fungible token (NFT) space and the growing use of Ethereum-based Decentralized Finance (DeFi) protocols.
That said, the design of the upcoming ETH 2.0, which introduces a proof-of-stake (PoS) consensus mechanism for the network, will improve the processing mechanism of Transactions Per Second (TPS).
This is not to say that the EIP 1559 upgrade yielded no positive impact. The deflationary property it introduces to the network goes a long way in boosting the price of ETH. However, a lasting solution to the current ETH gas fee problem is the PoS network overhaul.
Key Ethereum Levels to Watch — August 30
Ethereum continues to saunter between $3,300 and $3,100 as the cryptocurrency market failed to utilize the weekend to climb higher. The second-largest cryptocurrency currently trades below the crucial $3,200 psychological line but receives support from the ascending trendline around $3,180.
That said, we should expect a steady climb towards the $3,30 region over the coming days if the price remains above the critical trendline. A fall below this line could prompt a decline towards the $3,000 round figure.
Meanwhile, our resistance levels are $3,200, $3,300, and $3,400, and our support levels are $3,100, $3,000, and $2,900.
Total Market Capitalization: $2.15 trillion
Ethereum Market Capitalization: $375.8 billion
Ethereum Dominance: 17.4%
Market Rank: #2
