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After 11 months of relentless bears, the statistics of Susquehanna, a US-based commercial and technological company, have confirmed that mining is no longer profitable. This is mainly due to the unstoppable bears that pushed prices from $ 1400 to $ 200. For this reason, the monthly profitability of mining operations is now zero, down from the $ 150 recorded in the middle of last year. .
The decline in Eth Mining is due to serenity
Unlike Bitcoin, Ethereum's extraction uses GPU chip sets. Although they guarantee complete decentralization, Ethereum does not have a predetermined emission model. Then again at the moment there is a limit on the total amount of ETH that will circulate.
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The Ethereum awards consist of block premiums issued for the platform development roadmap. Eventually, it will switch to a stake test model and the rate of inflation will depend on the ETH share. So, at the moment, in order to easily pass from the job test to the game test, a difficulty adjustment scheme is in place to increase exponentially the difficulty of ETH extraction.
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This would end up forcing mining to become unprofitable and forcing a difficult fork to use proof-of-stake protocol. To address the imminent mining difficulties, it was necessary to adapt the emission model. As a result, during the Byzantine fork of 2017, block premiums were reduced from 5 to 3.
17 / As the difficulty bomb will be delayed by one year, another crossroad will be needed starting in January 2020. #Ethereum will experience a significant drop in its rate of inflation as the roadmap progresses.
– The Element Group (@TheElementGrp) November 13, 2018
In the upcoming constant fork of Constantinople, the core developers plan to reduce the issue of blocking premiums from 3 to 2 by mid-January 2019, while pushing the implementation of the distressed bomb until 2020 The 33% reduction in the annual block premium will reduce inflation from its current level of 7.5% to 5%.
Analysis of ETH / USD prices
Weekly chart
From a top-down approach, it is clear that ETH / USD is fighting sellers. Not only is it traded within a bear breakout model with a clear point of interest at $ 250- $ 300 as resistance and $ 160 as support, but the fundamental factors support price.
Therefore, in line with our previous ETH / USD price analysis, we recommend patience for risky traders until there are large volume losses below the $ 160-Sep 2018 lows. These outages will confirm the breakout pattern. of the early August bear and will usher in the next wave of sellers pointing at $ 130 and later at $ 50.
Daily chart
The trend of the bear in the early years of August and September is clear in this time frame. Now that prices are in a clear tendency to confirm the losses of October 11th and September 5th when sellers rise, aggressive negotiators can begin to unload on-site with a $ 210 and $ 1 first stop. 130 more if there are solid losses below the lows of $ 160-Sep.
As indicated above, such losses will cause conservative sellers who aim for $ 130 and then $ 50.
All graphics courtesy of Trading View
Disclaimer: The opinions and opinions expressed are those of the author and are not investment advice. Trading any form involves risks, as well as your due diligence before making a commercial decision.
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