The price of Ether (ETH), the cryptocurrency of Ethereum, broke the 500 resistance against the US dollar for the first time in more than 2 years. The network’s hash rate is also on the rise, reaching a new all-time high, suggesting that more miners are joining the race to mint the second largest cryptocurrency by market capitalization.
At the time of writing, each Ethereum coin equals $ 506, for set its highest value so far in 2020, according to data from CoinMarketCap. The new price represents an increase of at least 6.47% in the last 24 hours and 200% in the last 11 months.
Ethereum’s market capitalization has maintained a considerable rebound throughout the year, going from USD 13.74 billion in January to USD 53.86 billion today. Likewise, the volume of daily transactions has increased compared to 2019. In the last 24 hours, cryptocurrency trading in dollars reached a value of USD 3.53 billion in volume of operations.
Ethereum last experienced these price levels in June 2018, amid a bull run that saw it hit its all-time high of more than $ 1,300. Since then it has seen some fluctuations, even dropping below $ 100 in June of last year.
Although the price of ethers in dollars is on the rise, the same cannot be said for ETH / BTC pair moving in exactly the opposite direction, reaching a minimum with respect to the last 4 months.
As can be seen in the graph, the price of ETH has not stopped rising during the month of November. Source: CoinMarketCap
The increase in the price of ETH coincides with an increase in its hash rate or in the computing power registered in the network, which on Thursday reached a new all-time high exceeding 250 terahash per second (TH / s), as seen on the 2miners website.
In October, the Ethereum hash rate was already registering a rebound that had not occurred on the network since August 9, 2018 when it reached 247 TH / s. At the time, blockchain analytics company Glassnode attributed the growth in the hash rate to DeFi’s “inflated and escalating commissions.”
Initial phase of Ethereum 2.0 in everyone’s sights
The rebound in the value of ETH since November arrived, may be associated with an assumption by the community that the price will continue to rise after the launch of Phase 0 of ETH2.0. In fact, during the first days of November, the price of ETH already marked a price increase of 7%, coinciding with the news of the launch of the initial phase of Ethereum 2.0.
At that time, too there was a considerable increase in the volume of trade. From $ 11.2 billion, it increased 30% to $ 14.65 billion.
The U-shaped recovery curve may indicate that the uptrend is just beginning. Source: Tradingview.
As reported by CriptoNoticias with the next launch, it is expected that companies such as Coinbase will soon offer the possibility of centrally staking Ethereum 2.0. In this regard, developer Justin Drake said he is convinced that in the medium term reliable decentralized pools will be put into operation that will allow obtaining interest.