Ticking Big Ben

The Ethereum network has undergone seven significant upgrades since its inception. What makes the imminent London Upgrade unique is that it introduces “rent control” measures on gas fees via EIP 1559, a fundamental change to the fee structure that renders the asset scarcer and more reflective to fluctuations of on-chain fundamentals. In hindsight, the past seven upgrades are often viewed as catalysts for upside price actions, as most have led to favorable performances (and more often than not, over an extended timeframe). However, the immediate impact of historical upgrades can’t be decoupled from strong bullish momentum experienced across markets, and London is no exception. Ether’s great run-up in the week leading up to the London Upgrade suggests that the market trades on expectations, which may precede any real changes in fundamentals and sometimes eclipse common sense, so tread carefully.