Two leading indicators promise new price records for Ethereum

CONTENT

  • Ethereum searches hit record high

  • The difficulty of mining the second largest cryptocurrency at an all-time high

  • Typically, these indicators indicate further price increases

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The difficulty of mining Ethereum and the growing number of searches on Google suggest that the coin has not yet exhausted its bullish potential

Bitcoin began a downward correction after a short break above the psychological $ 40,000 mark. However, Ethereum does not think to give up positions yet.

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At least two metrics – the number of searches and the difficulty of mining – indicate the stability of the network and the willingness of the coin to continue to grow. The last time Google users took such an active interest in the second largest cryptocurrency was during the 2017 bull market. Assuming history repeats itself, largest smart contract platform is on the cusp of global growth again.

Dynamics of search queries on Ethereum. Source: Google Trends

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Searches reflect user interest

Ethereum is a fully featured platform. However, the interest in it is fueled mainly by speculation. The project has a long way to go before it can unleash its potential and compete with application programming and application development platforms..

The Ethereum network is now too slow and transactions are too expensive. Nevertheless, Ethereum continues to grow amid a boom in the defi industry. Most of the projects in this industry are built on the Ethereum blockchain.

The increased interest in the platform against the background of general growth in the cryptocurrency market is attracting the attention of potential investors. To find out more about it, they often go to Google. Last time, Ethereum searches hit a high when the coin was trading at record levels. It is possible that this time the indicator reflects the market sentiment and indicates an upcoming growth.

ETH mining just got harder

Two leading indicators promise new price records for Ethereum

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Ethereum is in the process of moving from ETH 1.0 to ETH 2.0. This is a major update that will change the Proof-of-Work (PoW) transaction verification algorithm to Proof-of-Stake (Proof of Stake, PoS). The migration process has already started. Users have deposited millions of ETH on the new blockchain, but the project still uses PoW to confirm transactions.

Number of coins placed on the ETH 2.0 contract Source: ETH 2.0 Launchpad

This means that miners need high-power computer hardware and a lot of electricity. Not everyone can afford it. However, the growing difficulty of mining on the network means that the number of miners willing to provide their resources in exchange for ETH is growing rapidly. The more validators or miners connect to the network, the mining difficulty increases proportionally. Thus, the rise in mining difficulty reflects the growing interest in the network..

The difficulty of mining ETH. Source: Etherscan

Both of these indicators are extremely positive for Etheruem and can serve as leading indicators of where the price of Ether will go in the near future..

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Two leading indicators promise new price records for Ethereum
Two leading indicators promise new price records for Ethereum
Two leading indicators promise new price records for Ethereum

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