Ethereum Gas Fees Falling – Can Vitalik Plan Help Defeat Solana?
Ethereum gas fees are a headache for a long time, especially during high traffic. Now, Vitalik Buterin, the co-founder of It, proposes a fix to make transactions faster and cheaper. But can these changes help Ethereum stay ahead of competitors like Solana? Let's take a closer look at what this means for the blockchain world and how it affects the future of the second largest crypto.
Ethereum gas fees can be cheap.
Vitalik's plan is all about reducing the cost of Ethereum transactions. Currently, gas charges are a big issue, so the goal is to reduce charges for certain operations in EVM. It suggests degassing to 1 in the 2-5 range, and to 2 in the 6-10 range. Not only that, but log jobs can be four times cheaper.
This change could give Ethereum a huge boost, increasing the transaction per second (TPS) up to 1.5 times without causing issues such as large amounts of data. It's a smart move, especially when Solana is coming along so fast.
Can Ethereum keep up with Solana?
Solana recently surpassed Ett in daily gas bill revenue. This increase is fueled by AI meme coins like Goatseus Maximus (GOAT). With Solana attracting attention, Ethereum cannot slow down. Vitalik's proposal to cut gas fees may be just what Ethereum has to go on.
But is it enough? Solana is still making big moves, and Ethereum needs to keep innovating to take the crown in the blockchain space.
Ethereum price action
On the technical side, Ethereum is moving in an upward trending channel and the squeeze gave an upward breakout, which could not be achieved soon. After the price was rejected at $2,773, it made a strong impact on October 21, lowering it to $2,454. Right now, ETH is sitting around $2,531.
Technical indicators are not giving Eth our bullish sentiment. MACD has dropped below its signal line, hovering around -32. Additionally, the 100-day and 200-day moving averages are above the price, making it difficult for Ethereum to break. RSI is also down at 31, indicating that the coin is oversold. However, the divergence between RSI and price action hints that we may see a rebound soon.
What is expected
Vitalik's proposal could be a game changer if it actually lowers gas bills. Ethereum needs this win to stay competitive, especially with Solana pushing hard. If the gas charge goes down and Ethereum becomes more efficient, it may just stay in the lead. On the price side, Ethereum may struggle a bit, but there is a chance of recovery soon. So for now it's a wait and see game.
