Ethereum continued its bullish climb over the weekend before stalling at the beginning of a new week. The second-largest crypto has now reclaimed the pre-FTX crash price. In just one week, the price of Ethereum has recovered by 17% and looks unstoppable to the $1,650 resistance, according to data provided by CoinMarketCap. 

Meanwhile, investors would be excited that Ethereum has become deflationary once again. According to UltraSound Money, the network’s gas fees have reached 15 gwei – representing about a 30 gwei drop compared to the period before the Merge. 

The idea of Ethereum becoming deflationary takes us back to the network update. With the Merge, the EIP 1559 upgrade enabled a burn mechanism on Ethereum that destroys ETH generated as fees from the network’s transaction verifications. That explains the deflationary dynamics being witnessed.