Ethereum Hashrate Breaks All-Time High, Will Price Follow?
May 16 2022 - 7:00PM
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Ethereum hashrate has been on the rise in recent times. The
cryptocurrency has been one of the most profitable ventures for
crypto miners and as more people flocked to enjoy some of the
spoils, the hashrate has skyrocketed. It has now hit multiple
all-time highs in just the space of May alone. However, the
question remains if the price of the digital asset is set to do as
well as it has done in terms of its mining hashrate. Ethereum
Hashrate Hits New ATH The month of May would prove to be a very
good one for Ethereum when it comes to mining. After steadily
climbing through the month of April, mining hashrate had touched as
high as 1.1923 PH/s on the 3rd of the month. This was
understandably widely celebrated in the market but it was far from
done. Related Reading | Bitcoin Funding Rates Remain Unmoved
Despite Plunge To $30,000 The next couple of weeks would be new
all-time highs set after the other. Now, two weeks into the month,
it has reached another ATH. On 13th May, the Ethereum hashrate had
climbed to 1.2370 PH/s. This is the highest that the hashrate has
ever been. It represents a 124% growth on a year-over-year
basis. ETH price settles above $2,000 | Source: ETHUSD on
TradingView.com Ethereum still operates on a proof of work
mechanism though and it is reported that there are over 80 mining
pools that are currently providing the hashrate for the network.
One thing to note is that the hashrate has been on the rise as the
“Merge” draws closer. This upgrade would effectively eliminate the
need for high computing machines required to solve complex
equations to verify transactions. Instead, the network would use a
proof of stake mechanism to carry out transactions. How ETH
Is Doing Ethereum has managed to make its mark above $2,000 once
more. This has come after a long week fraught with crashes and
dips. A hard-won victory but a victory nonetheless. However, it
would seem to be the only one trend-wise. Looking at the
indicators for the digital asset, it has marked an incredibly
bearish trend for both the short and long term. Even though it is
maintaining its position above the $2,000 level at the time of this
writing, it still marks all the boxes for a bearish asset, such as
trading below the 50 to 200-day moving averages. Related Reading
| Ethereum Tumbles To 10-Month Lows As Sell-Offs Intensifies
Sentiment among investors has also skewed completely into the
selling territory. With even the 100 – 200-day MACD pointing
towards sell. What this shows is that the selling pressure on
investors at this time is one of the highest it has ever been in
recent times. Nevertheless, ETH holders are not doing too badly
compared to others. The majority of those who hold the digital
asset remains in the profit territory even though ETH has lost over
half of its all-time high value. It is also worth noting that the
majority have been holding their coins for more than one year.
Featured image from Medium, chart from TradingView.com
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