Ethereum (ETH) reaches ATH above $4600, targets $5K | Invezz

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Ethereum (ETH/USD) has been leading the crypto charts in terms of the gains made during the past 24 hours. The altcoin reached an all-time high of above $4600 on November 3 after an over 5% gain during the past 24 hours according to CoinGecko.

This comes as the Ethereum network enjoys other major gains, such as an increase in the Ether mining hashrate and a reduction in miner selling. The supply on exchanges is also dwindling, and this is having a positive impact on prices.

Ethereum mining hashrate reaches all-time highs

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The Ethereum mining hashrate has also been high, and it had reached a high of 812,768 GH/s. Despite mining rewards being affected by the EIP-1559 upgrade, miners are still receiving significant profits owing to the newly launched tips that allow network users to have the option of rewarding the miners.

While the amount that miners are receiving with this tipping function is not as high as the rewards they previously received, there has been increased miner interest in the Ethereum network due to the rising value of the Ether token. The fee-burning feature on the network has boosted the assets price. Ether is up 33% since the EIP-1559 upgrade was implemented.

Data shows that Ethereum mining activities were not affected by the withdrawal of mining fees. However, during the first few days, a drop was witnessed, but the value appreciation led to a recovery shortly after.

The rising hash rate is usually associated with rising supply, negatively affecting the asset’s prices. However, data from on-chain metrics shows that miners are not rushing to sell their assets, which could indicate stabilizing prices.

Ethereum burning

As aforementioned, some of the Ethereum gains are attributed to the EIP 1559 proposal launched in early August this year. This proposal activated a burning mechanism aimed at making Ether have a deflationary supply.

Recently, the burning proposal led to Ethereum achieving a net-deflationary week. This news has been attributed to the recent gains in value. Moreover, the token is now deemed to have achieved the functionality of being “ultra-sound money”, as had been earlier predicted before this proposal was implemented.

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