Ethereum Mining Difficulty Hits Record Levels As Ether (ETH) Hovers Above $1200

News / 23.01.2021

Ethereum price has recovered in the past 24 hours following a sharp drop below its support levels. The leading altcoin has been bullish in recent weeks and created a new all-time high this week. This had led to speculations that Ethereum could hit the $2,000 mark before the end of the week.

However, a major correction occurred yesterday, with the coin dipping towards the $1,000 support level. Since then, the coin has retraced its movements and is currently trading at around $1,200 at writing. This is again of 5% within this period, and Ether looks to have come out of the bearish situation.

Looking at the current trend, an upward trend in price would see ETH test the resistance levels of $1,400. If the coin successfully surpasses $1,400, it could move towards the vaunted $2,000 mark. However, a dip below the $1,000 support level could see the altcoin drop towards $900.

Nevertheless, the market sentiment is positive towards Ethereum, with expectations that it could soon reach uncharted territory. Some analysts have predicted that ETH could hit $11,000 before the end of the year. The leading altcoin has always been regarded highly within the crypto space due to the projects built on its smart contract network. Ethereum 2.0 is also seen as a major factor, with billions of dollars staked already in its smart contracts.

Ethereum Mining Difficulty Hits record levels.

Ethereum’s price is not the only metric that has risen as Ethereum mining difficulty has hit record levels. As per data provided by Glassnode, the mining difficulty is now at 4410T.

Since the beginning of the year, Ether has witnessed a significant increase in mining difficulty. The altcoin experienced a major bull run during this period, which culminated in creating a new all-time high. The surge in mining difficulty is similar to what was recorded in 2017. This offers some significance as it shows that the Ethereum network is getting robust with more miners on the network.

The crypto community will be hopeful that the recent development in mining difficulty follows historical trends. Ethereum is currently in an extended bullish run, with the leading altcoin recording an increase in its marketcap to $140 billion.

Olowoporoku Adeniyi is a blockchain enthusiast and crypto evangelist. Currently he loves all things crypto and covers happenings within the blockchain space.