Soon after the price of Ethereum crossed the critical $1400-level a few days ago, the charts dropped. However, amid the size of market adjustments, the cryptocurrency continued to stay near to its ATH with a selling price of $1,255 at press time.
Over the past few days, two of Ethereum’s primary metrics have also recorded all-time highs. The world’s second-largest cryptocurrency has seen its network problems and hash rates reaching new heights.
The mining difficulties of the Ethereum network have been slowly growing for some time now, with 4410T now reaching the same amount as the data given by Glassnode. In fact, the pace of its growth has increased even further since 05 January 2020.
Interestingly, with the start of 2021, the coin was eventually able to rise beyond the heights last seen during the 2017-18 bull run. This has a great deal of importance for Ethereum and the fact that, with the increase in the complexity of the network, the hash rate for the coin has also risen is a good indication of the robustness of the network and of the market behavior of Ethereum in the coming months.
According to Etherscan, the average hash rate of the coin, identical to the network complexity, has recently reached a new peak of 338,213,5899 GH/s, with the same holding without any major dips on the graph. The fact that these two metrics have done so well considering the significant changes that Ethereum has experienced in the last few months is a good sign for traders who have invested in the coin.
This isn’t it either. Despite the long-delayed introduction of ETH 2.0, according to the coin’s network info, approximately 2.79 million ETHs were participating in the ETH 2.0 deposit contract at press time.
The fact that after a $10k decline in Bitcoin value relative to its ATH, Ethereum has retained its price level above $1000 indicates that these solid network dynamics are backing the price of the coin on the charts.
The spike in these two metrics suggests that more people are likely to mine Ethereum, and one of the main reasons why this is the case is that mining ETH is still a lucrative enterprise. To a certain point, it may be claimed that the main factor behind the growth in mining difficulties and hash rates in Ethereum is an increase in mining revenues.
According to the data generated by BitInfoCharts, Ethereum miners continue to be very lucrative. The data reveals that the profitability of mining firms has improved since October 2020. At press time, Ethereum’s mining viability was about 0.085, increasing gradually from a low point of 0.0225 in the last few months.
Solid network fundamentals, combined with the backing of the Ethereum miners who are carrying the coin, suggest that the coin is likely to retain its current role. Although Ethereum appears to enjoy a high connection with Bitcoin and its price activity, a major Ethereum correction might not be on the cards in the short term.
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