The Ethereum EIP-1559 upgrade, implemented in August 2021, introduced a base fee burn mechanism, aiming to make gas fees more predictable and reduce supply inflation. Its impact on price was multifaceted. Initially, hype around the upgrade drove bullish sentiment, with ETH prices surging from $2,500 to over $4,000 by late 2021. The burn mechanism, removing ETH from circulation, created a deflationary narrative, further fueling optimism. However, short-term volatility persisted due to market dynamics and broader crypto trends. While some argue EIP-1559 directly supported price growth by enhancing scarcity, others note that macroeconomic factors and adoption rates played larger roles. Long-term, the upgrade strengthened Ethereum’s fundamentals, but its price impact remains intertwined with network usage, staking trends in ETH 2.0, and overall market sentiment, rather than being a sole catalyst for growth.