Ethereum’s price fell again shortly after beating the highly anticipated $ 1,400 level a few days ago. However, despite the price correction, the cryptocurrency continues to be traded close to its ATH, with a price of $ 1,255 at the time of writing.
In the past few days, two of Ethereum’s benchmarks have reached all-time highs. The world’s second largest cryptocurrency has reached new heights in terms of hash rate and network difficulty along with its price.
The mining difficulty of the Ethereum network has been steadily increasing for some time now, reaching 4410T, according to data provided by Glassnode. In fact, the rate of increase has gained even more momentum since January 5, 2020. Interestingly, as 2021 begins, the coin managed to surpass the levels last seen during the 2017-18 bull run. With the increasing difficulty of the network, the increase in the hash rate of cryptocurrency is a positive sign for the robustness of the network and Ethereum’s price action in the coming months.
Similar to the cryptocurrency’s network difficulty, the average hash rate has recently reached a new high of 338,213,5899 GH / s, according to Etherscan. Despite the big changes Ethereum has gone through in the last few months, these two metrics have performed very well, which is a positive sign for the trader investing in the coin. Not all of them are limited to this. Despite the very delayed launch of ETH 2.0, approximately 2.79 million ETH has been staked in the ETH 2.0 deposit contract, according to the cryptocurrency’s network data.
Despite the $ 10,000 drop on the Bitcoin side, Ethereum’s price level above $ 1000 shows that these strong network foundations support the price on the charts. The increase in these two metrics indicates that more people are willing to mine Ethereum, and one of the main reasons why this is the case, reveals the fact that mining is still a profitable venture for ETH.
Ethereum miners remain highly profitable, according to data provided by BitInfoCharts. Data show that miner profitability has been on the rise since October 2020. It is worth mentioning that at press time, Ethereum’s mining profitability has grown steadily from around 0.085 and from as low as 0.0225 in the past few months.
Strong network fundamentals combined with the support of the miners holding the cryptocurrency show that Ethereum is likely to maintain its current position. While Ethereum continues to have a high correlation with Bitcoin, it may not be a major correction for Ethereum in the short term.