in

Ethereum Price Retests Key Resistance Level as Aided by These Two Fundamentals

Ethereum Price Retests Key Resistance Level as Aided by These Two Fundamentals


This week has not been exceptionally pleasant for Ethereum (ETH) investors as the digital currency has trailed the global digital currency industry in an unprecedented free fall. The cryptocurrency continued on its free fall which began last Friday as it started Monday around a price of $3,310.21. Ether soon fell to its lowest price point of $2,676.41, printing a 7-day low at this point in the past 24 hours.

Ethereum to USD Chart. Source: CoinMarketCap

advertisement

The cryptocurrency has rebounded from this price point and has made a bullish recovery to retest the $3,000 resistance level. At the time of writing, the cryptocurrency is changing hands at $3,027.11 after printing a 7.93% growth in the past 24 hours. The growth of the cryptocurrency cannot be disconnected from two key fundamentals, the increasing deposit in Ethereum 2.0 contract address, and the surging mining difficulty.

Increasing Ethereum 2.0 Deposits

A major metric that shows investors are still bullish on the future of the Ethereum network is the rate of embrace Ethereum 2.0 as made evident by the total Ethereum deposited and locked in the new protocol’s smart contract. Per recent Glassnode’s data, the Total Value Locked (TVL) in Ethereum 2.0 Deposit Contract just reached an ATH of 7,746,178 ETH.

Amidst the ongoing price slump, the growing funding or commitment of funds in Ethereum 2.0 shows investors are not focused on the temporary price performance, but rather, on what the Ethereum network will bring to the table in the long term. Ethereum 2.0 investors are also billed to earn staking rewards on their locked Ethereum assets.

Mining Difficulty

The mining difficulty is not only a metric that is peculiar to the Bitcoin blockchain, but also to Ethereum as it still operates as a Proof-of-Work (PoW) network. According to data from Etherscan, the Ethereum mining difficulty attained its highest level of  9,243.210 TH on Tuesday, showcasing that many miners are coming back online following the quit notice many suffered in China, thus, leading to their migration.

Ethereum Mining Difficulty Chart. Source: Etherscan

Some investors who value network decentralization and security must have taken advantage of the dip to stack up the Ethereum coins. Increasing mining difficulty reveals the network has more miners, which in turn complements the security of the entire system.

Disclaimer

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

About Author





Source link

Leave a Reply

Your email address will not be published. Required fields are marked *

GIPHY App Key not set. Please check settings

What do you think?

Kava announces $185 million DeFi fund following similar moves by Fantom, Algorand

Kava announces $185 million DeFi fund following similar moves by Fantom, Algorand

Fidelity Survey: 52% Of Institutional Investors Hold Bitcoin, Cryptocurrency