Quick overview

Ethereum (ETH) is currently holding above the $1,700 support level, despite experiencing a 1.2% decline over the past 24 hours. The price stability in ETH/USD comes even as significant scalability proposals emerge from key Ethereum researchers, potentially setting the stage for dramatic throughput improvements on the world’s leading smart contract platform.

Revolutionary EIP-9698 Proposes Exponential Gas Limit Growth

Dankrad Feist of the Ethereum Foundation has presented Ethereum Improvement Proposal (EIP-9698), a bold scheme to raise Ethereum’s gas limit by one hundred-fold over four years. Starting about June 1, the plan calls for using a “deterministic gas limit growth schedule” to progressively raise the present 36 million gas limit to an amazing 3.6 billion.

Two phases of this exponential expansion would be a tenfold increase over roughly two years (164,250 epochs) followed by a last ten-fold increase. Should this is carried properly, Ethereum’s transaction processing capacity may theoretically increase to over 2,000 transactions per second (TPS), therefore positioning it more competitively against high-throughput chains like Solana, which now runs between 800-1,050 non- Vote TPS.

Feist noted in the proposal, “by introducing a predictable exponential growth pattern as a client default, this EIP encourages a sustainable and transparent gas limit trajectory, aligned with expected advancements in hardware and protocol efficiency.”

Technical Challenges and Implementation Considerations

Feist notes possible difficulties include load on less-optimized nodes and more block propagation times, even if the idea offers notable scalability advantages. Still, he says “the exponential schedule with very gradual increases per epoch gives node operators and developers ample time to adapt and optimize.”

This plan marks a change in Ethereum’s scalability approach, which has lately mostly concentrated on layer-2 solutions. Critics of this method contend that it has split the ecosystem into siloed chains with low interoperability, therefore compromising the user experience.

ETH/BTC Technical Analysis Shows Signs of Recovery

Analyst Daan claims Ethereum has lately demonstrated strength against Bitcoin, reclaiming its local range and maybe indicating a larger market recovery. Positive movement on many altcoins has already started from this development, implying better market mood.

Bulls have to force the price toward the range high while recovering the 4-hour 200 MA and EMA if Ethereum is to keep on its recovery. Reversing this might signal the start of a longer period reversal, so sparking another significant altcoin surge over the whole market.

ETH/USD: Key Levels to Watch

ETH/USD

Currently trading around $1,780, Ethereum had peaked above $1,861 in recent days before somewhat declining. With a daily RSI of 53 and trending down toward its neutral level of 50, the daily RSI shows diminishing optimistic momentum.

Key levels to watch include:

• Immediate support: $1,700
• Critical support: $1,449
• Key resistance: $1,861
• Psychological target: $2,000

Ethereum’s stabilization between $1,725 and $1,850 shows that bulls are defending important levels; yet, a catalyst is required for the next major movement. While global tensions and declining economic data still affect attitude, holding above the 4-hour 200 MA and EMA indicates momentum remains favorable for buyers.

Ethereum Fee Structure Reforms Proposed to Balance Revenue Generation

Parallel with scaling options, Ethereum community members Kevin Owocki and Devansh Mehta have suggested a dynamic application layer cost structure. Their idea uses a square root formula to proportionately lower the percentage of fees as funding capital increases, therefore balancing income generating for app designers with equitable fee extraction.

Once the funding pool of an application hits $10 million, this suggested architecture would cap fees at 1% once smaller developers could create distributed apps free from undue costs while promoting project expansion.

These ideas reflect growing calls to change value accrual systems and keep Ethereum’s economic competitiveness against rising alternatives like Solana, which attracted more new developers than Ethereum in 2024, as Ethereum fees lately dropped to five-year lows due to lowered base layer activity.