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.
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.
— glassnode alerts (@glassnodealerts) September 22, 2021
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.
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.
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.
- Bitcoin Miners Likely Behind Crash Below $19K, Here’s Why
- India’s Crypto Exchanges In Trouble? 1% Tax Keeps Traders Away
- Crypto Exchange KuCoin Denies Rumours of Them Halting Exchange Withdrawals
- Elrond Price Jumps By 9% Over This Announcement
- XRP Holding Better Than Most Altcoins, Here’s Why
- Breaking: Polygon, Major Blockchains Hit With Network Attack
- New Crypto Rules In Europe: A Global Standard For Regulation?
- Third Biggest Whale Adds 1,416 Bitcoins In Last 2 Days; Will This Pump BTC?
- ‘Big Short’ Michael Burry Says Bitcoin Crash Is Only Halfway Through
- These Whales Scoop $850 mln Worth FTX Tokens Ahead Of BlockFi Deal
- Polygon Price Analysis: $0.45 Fallout could Plummet MATIC price by 25%
- ETH Price Analysis: Can $1000 Support Undermine Selling Momentum?
- BTC Price Analysis: Technical Indicator hints Upcoming recovery for Bitcoin
- CRV Price Analysis: Buyers Prepare To Boost CRV Prices To $1
- DOGE Price Analysis: Pullback Opportunity Eyes its Next Jump to $0.1
- Sandbox Price Analysis: Emerging Pattern May Soar SAND price by 20%
- Polygon Price Analysis: V-top Reversal may Direct MATIC to $0.31 Support
- ETH Price Analysis: Is Ethereum Dropping To Three Digits?
- Bitcoin Price Analysis- BTC on Losing Streak Nearing $17800; Will it Hold?
- NEAR Price Analysis: Falling Prices Eye $3 Breakdown; Should Coin Holders Worry?