#GasFeeImpact Ethereum gas fees have a significant impact on its price trends. Gas fees are payments that users make to compensate for the computing energy required to process transactions on the Ethereum network. These fees fluctuate based on network demand; during periods of high congestion, gas fees can increase significantly, making transactions more expensive. This can discourage users from interacting with the network, potentially reducing demand for Ether (ETH) and putting downward pressure on its price. On the other hand, when gas fees decrease, as was recently seen with a 93% drop on February 7, 2025 due to validators increasing the block gas limit, the network becomes more accessible and cost-effective for users. This reduction in transaction costs can encourage more activity on the Ethereum network, potentially increasing demand for ETH and positively impacting its price.