Ethereum Hashrate Breaks All-Time High, Will Price Follow?
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.
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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.
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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