Ethereum (ETH) is facing renewed selling pressure, as its price continues to pull back from recent highs.

At the same time, the network’s developers have introduced a major proposal to simplify Ethereum’s complex transaction fee structure, aiming to enhance usability and reclaim competitiveness in a rapidly evolving blockchain landscape.

While traders navigate short-term volatility, Ethereum’s core developers are setting the stage for a major architectural change.

EIP-7999, a new Ethereum Improvement Proposal, has been introduced by Vitalik Buterin and Anders Elowsson. It proposes a unified, multidimensional fee market that would significantly simplify how users pay for Ethereum transactions.

Currently, users must estimate costs for different resources like computation, storage, and bandwidth.

EIP-7999 replaces that with a single global maximum fee, streamlining the process and reducing the complexity involved in interacting with Ethereum.

The proposed change not only promises to improve the user experience but also enhances capital efficiency across the network.

This new fee model also seeks to fix some of the rigidity introduced by EIP-1559, which focused solely on execution-related fees.

By allowing validators to prioritize transactions more efficiently, EIP-7999 could reduce fee volatility and make Ethereum more accessible to mainstream users.

Ethereum’s proposed fee overhaul comes at a time of intense competition.

Rival blockchains such as Solana and Avalanche are rapidly gaining traction by offering cheaper and faster alternatives.

In this context, EIP-7999 is seen as a direct response to growing pressure from these networks.

The Dencun upgrade in March 2024 had already slashed layer-2 transaction costs by 95%, reducing average fees from $86 to just $0.39.

However, Ethereum’s fee revenue has become increasingly volatile, while competitors like Tron and Solana have seen their transaction volumes and fee income surge.

The new proposal aligns with Ethereum’s ongoing strategy to optimize cost structures, enhance scalability, and strengthen its appeal to developers and institutional users alike.

Meanwhile, Ethereum’s fundamentals continue to attract institutional capital.

On August 4, Nasdaq-listed SharpLink Gaming acquired 18,680 ETH — worth approximately $66.6 million — via Galaxy Digital.

This move brought its total ETH holdings to nearly 498,884 ETH, valued at around $1.8 billion.

SharpLink’s growing ETH treasury reflects its belief in Ethereum’s long-term relevance in the Web3 economy. The company’s chairman, Ethereum co-founder Joseph Lubin, emphasized that this acquisition reinforces Ethereum’s mission of decentralization and institutional integration.

Over recent weeks, SharpLink has aggressively accumulated ETH through direct purchases from the Ethereum Foundation and secondary markets, while also participating in staking to support the network.

At the time of writing, ETH is trading at approximately $3,618, with a 24-hour price range between $3,557 and $3,673.

After finding support around the 78.6% Fibonacci retracement level at $3,392 on Sunday, Ethereum bounced back with a 10.25% recovery.

However, bullish momentum stalled at the $3,730 daily resistance level. On Tuesday, ETH faced rejection and dropped nearly 3%, with the price slipping to around $3,588 on Wednesday.

If the correction continues, analysts warn that ETH could retest support at $3,400. Should this level fail to hold, the price may revisit the $2,957 support level.

A move below this threshold could deepen the correction further.

On the upside, a daily close above $3,730 may trigger a rebound toward the next resistance at $3,786, with further upside potential toward $3,961 and possibly $4,100.

Despite recent weakness, the Relative Strength Index (RSI) on the daily chart has climbed back above 55, signaling growing bullish momentum.

However, the MACD continues to show a bearish crossover, reinforcing the current correction bias.

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