According to on-chain data analytics provider, Glassnode, Ethereum’s Hash Rate just reached an all-time high (ATH) of 532,411,759,741,113. As a Proof-of-Work (PoW) network, the hashrate is a measure of the processing power of the Ethereum blockchain. The hashrate specifically helps determines the number of times the network can attempt to complete a difficult mathematical puzzle every second, in order to add blocks of verified transactions to the blockchain.
The increasing hashrate as seen helps measures the network’s health, as the higher this rate, the greater the number of miners that will be needed to launch a 51% attack on the system, a highly unlikely situation.
Amidst the growing clamor for alternatives to Ethereum’s skyrocketing transaction fees, the burgeoning hashrate is an anchor for the network’s core believers.
Implications of the Increasing Hashrate on ETH Price
The global cryptocurrency industry has a lot of factors that affect its growth per time, and while Ethereum is just one of many, the hashrate growth adequately coincides with a rise in the price of the digital currency.
On average, Ethereum traded at around $1,650 in the past week, joining to fuel an aggressive dip in the global cryptocurrency market capitalization. After dropping to a weekly low of $1,560.37, the coin is now exchanging hands at $1,710.43, up 2.32% at the time of writing according to CoinMarketCap.
Ethereum’s recovery is a well-backed one, and though there is a bit of correlation with Bitcoin, Ethereum bulls are confident in the positioning of the network as one of the most secure in the world. While awaiting the implementation of the EIP 1559 upgrade as well as the full rollout of the Ethereum 2.0, the future Proof-of-Stake (PoS) network, Ethereum bulls will continue to hang on positive on-chain metrics such as the hashrate growth amongst others to continually resist the bearish dump-off.
Ethereum Price Prediction: ETH bears contemplate a drop to $2450
- ETH price is building up downside pressure while clinging to the 200-SMA support.
- RSI remains flat below the midline, keeping the sellers cheerful.
- A drop towards $2450 remains in the offing if the 200-SMA caves in.
Ethereum, the no.2 widely traded digital asset, remains under pressure for the second straight day, consolidating Friday’s steep losses.
ETH price snapped its two-day rebound from monthly lows of $2651, as it got sold-off into the latest Chinese crackdown.
The People’s Bank of China (PBOC) on Friday declared all cryptocurrency transactions as illegal, imposing a ban, which saw over $400 million worth of tokens liquidated within 24 hours. Ethereum lost as much as $420 at one point before recovering to $2930.61 at the close.
At the press time, ETH/USD is trading almost unchanged on the day around $2900, having bounced off from daily lows at $2800.
Ethereum price defending 200-SMA but for how long?
Ethereum’s 12-hour chart shows that the price is wavering in a narrow range, remaining in close vicinity of the daily troughs, as ETH price is not out of the woods yet.
Having witnessed good two-way volatility recently, ETH price maintains its range play, with the bearish 21-Simple Moving Average (SMA) at $3185 capping the upside.
Meanwhile, the 200-SMA at $2734 continues to offer support to ETH bulls. However, with the Relative Strength Index (RSI) still holding below the midline and bear cross in play, the path of least resistance appears to the downside.
Note that the 21-SMA breached the 100-SMA from above, confirming a bear cross on the said time frame on Thursday.
Once the 200-SMA gives way, a test of the horizontal trendline support at $2450 cannot be ruled out. The $2400 round number would be next on the sellers’ radars.
ETH/USD: 12-hour chart
On the upside, immediate resistance is placed at the 21-SMA, above which the horizontal 100-SMA at $3305 will be put to test.
ETH buyers will seek fresh entries above the latter, paving the way towards the downward-pointing 50-SMA at $3418.
ETH Locked in DeFi on Historic Highs: Details
Total number of Ethers utilized in various decentralized finance protocols spiked over 7.3 million
After a massive plunge in TVL, a decentralized finance ecosystem has recovered to observe some breathtaking metrics.
7,830,000 Ethers locked in DeFi
The net number of Ethers locked in various decentralized finance protocols spiked 12% in the past ten days. On Sept. 15, 2021, this indicator bottomed at a two-month low of about 6.95 million Ethers.
As displayed by mainstream decentralized finances segment tracker DeFi Pulse, the total quantity of Ethers in all indexed protocols nets 7.8 million Ethers.
Aave Finance (AAVE), Compound Finance (COMP), Instadapp, Uniswap (UNI), Curve Finance (CRV) are the most popular protocols in terms of TVL.
The five leading DeFis are responsible for almost 6.9 million Ethers, or 85% of net TVL, tracked by DeFi Pulse.
Yearn.Finance (YFI), Rari Capital (RGT) are on fire
In the last 24 hours, two DeFi protocols, Yearn.Finance (YFI) and Rari Capital (RGT), registered double-digit gains.
At the same time, the Ethereum 2.0 deposit contract targets almost the same numbers. As of Sept. 25, 2021, it has amassed 7.77 million Ethers.
Amid the current Ethereum (ETH) price dip, this massive amount of value is equal to $22.7 billion. To provide context, this sum can be compared to the market capitalization of Telenor, Credit Suisse, Suzuki and Warner Music Group.
Ethereum Network Activity is Stagnant while ETH Price Hovers Below $3k Level!
There’s a lot of fear and uncertainty in the crypto market right now. With news that China has officially declared all cryptocurrency transactions illegal, the Ethereum price, like the rest of the market, is under attack.
Ethereum Price Analysis:
The Major altcoin has lost 5.76% in the last 24 hours. Although it is now seeking to construct a firm support base at $3000. ETH Price had a tumultuous start, rising to an intraday high of $3,114 in the early morning before reversing course.
To reach the first big resistance level at $3,149, Ethereum would have to break past the $2,942 pivot. Support from the larger market, on the other hand, would be required for Ethereum to reclaim the $3,100 barrier. Unless there is a sustained crypto rally, the first significant resistance level and Friday’s high of $3,160.48 will likely act as a ceiling on the upside.
Network Activity is Stagnant
According to Santiment, most speculators are shifting away from Ethereum (ETH) in pursuit of better options with larger returns on investment.
Exchanges are seeing an influx of Ethereum, implying that people are selling their holdings in response to the recent marketwide crypto slump.
Santiment claims that network growth has been static for several months before the price of ETH fell.
This is attributed to growth in other Layer-1 initiatives like Avalanche (AVAX), Fantom (FTM), and Cosmos (ATOM), as well as decreased speculation in the non-fungible token (NFT) market.
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