Ethereum Price Retests Key Resistance Level as Aided by These Two Fundamentals

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.

advertisement

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.

?? #Ethereum $ETH Total Value in the ETH 2.0 Deposit Contract just reached an ATH of 7,746,178 ETH

View metric:https://t.co/SzbMPqdFWB pic.twitter.com/wZH9B4qeGe

— 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.

Mining Difficulty

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.

About Author

Godfrey Benjamin

Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture. Follow him on Twitter, Linkedin