Ethereum's computing power breaks through record highs, will the price follow suit?

Ethereum hashrate has been on the rise lately. Cryptocurrencies have been one of the most lucrative investments for crypto miners, with investments soaring as more people flock to enjoy some of the loot. Now, in May alone, it hit multiple all-time highs. However, the question remains whether the price of this digital asset will be as good as its mining power.

Ethereum Investments Reach New Highs

May is going to be a very good month for Ethereum as far as mining is concerned. After climbing steadily throughout April, the mining hash rate reached a high of 1.1923 PH/s on the 3rd. This was understandably lauded in the market, but far from finished.

The next few weeks will be one record high after another. Now, within two weeks of this month, it has reached another new high. On May 13, the hash rate of Ethereum climbed to 1.2370 PH/s. This is the highest value in computing power ever. A year-on-year increase of 124%.

ETH Price Closes Above $2,000 | Source: TradingView.com

Despite this, Ethereum still runs on a proof-of-work mechanism, and there are currently more than 80 mining pools reportedly providing computing power to the network. One thing to note is that hashrate has been on the rise as the “merge” approaches. This upgrade would effectively eliminate the need for the high-powered computers needed to solve complex equations to verify transactions. Instead, the network will use a proof-of-stake mechanism to execute transactions.

How ETH is performing

Ethereum once again managed to break above $2,000. This comes after a long week full of plunges and losses. It was a hard-won victory, but a victory nonetheless. However, this seems to be the only trend.

Judging by the digital asset’s metrics, it marks an incredibly bearish trend, both in the short and long term. Although it is holding above $2,000 at the time of writing, it still marks a bearish case for Ethereum, such as trading below the 50-200-day moving average.

Investor sentiment is also entirely skewed towards sell-off territory. Even the 100–200 day MACD points to sell. This shows that the selling pressure of investors at this time is one of the highest in recent times.

Still, ETH holders are not doing too badly compared to everyone else. Most holders of ETH are still profitable, even though ETH has lost more than half of its all-time high value. Notably, most have held their ETH for over a year.

Original: https://www.newsbtc.com/news/ethereum/ethereum-hashrate-breaks-all-time-high-will-price-follow/