The profitability of Ethereum cryptocurrency mining has halved in a week

The profitability of Ethereum cryptocurrency mining has halved in a week

There’s good news and bad news for gamers this week as the price of Ethereum has plunged, sending the profitability of the cryptocurrency favoured by GPU miners sharply down. The bad news is that even with a significant reduction in value, Ethereum remains a highly profitable crypto to hold onto and continue to mine.

The value of Ether, the actual currency of the Ethereum blockchain, is creeping back up and over $1,600 USD at the time of writing, a little bounce from a plunge under $1,400, and still down on February highs of over $2,000—a recent peak in the crypto’s value.

Ether price in USD vs. Ethereum mining profitability (Image credit: BitInfoCharts)

The value of Ether is likely to change considerably over the course of the next few hours, weeks, months, however—you really never know with most cryptocurrencies where they’re going to be in a week’s time, and they remain as volatile an investment as ever.

That plunge has seemingly had a larger impact on the profitability of the coin, however. More so than its value, too. That could be due to an increase in difficulty, an artificial limit on hash generation tied to the current overall hashrate of active miners.

The profitability of Ethereum mining, while on the rise slightly, has halved between February 23 and March 3 (via BitInfoCharts ).

Although even while shaving of all that value in just a few days, there’s still money to be made. And just like the value of Ether, profitability is gradually on the rise once more.

We’ve no idea where Ether will end up by 2022, but for now, it’s still profitable enough to keep GPUs in high demand.

The ongoing surge in cryptocurrency pricing has seen a resurgence of GPU mining activity in 2021, which has further exacerbated a shortage of graphics cards.

SushiSwap, Fleeing Ethereum Fees, Is Now Live on Binance Smart Chain, Fantom, Others

Bloomberg

(Bloomberg) – China Investment Corp. posted a return of more than 12% on overseas investments in 2020 after markets rallied on loose monetary policies, marking a breakout year for China’s $1 trillion sovereign wealth fund.The unaudited returns bring the Beijing-based fund’s 10-year rolling average to more than 6.6%, beating its target. Executive Vice President Zhao Haiying expects calmer markets this year even as policy makers try to stimulate growth without spurring runaway inflation.“2020 was a very unusual year,” Zhao, also a member of the Chinese People’s Political Consultative Conference, said in an interview before the top advisory body convenes for its annual meetings in Beijing.CIC stuck to its position as a long-term investor despite market gyrations, Zhao said. “We withstood the test of strong winds and waves, and delivered relatively good returns.”The company will maintain its strategy of increasing alternative and direct investments to 50% of its global portfolio before the end of 2022. It moved closer to that target last year even after such assets’ contribution dropped in 2019 as stocks rallied, she said, without providing details.“Last year was a test to us in terms of both portfolio returns and investment management, but it turned out quite well,” Zhao said.CIC adjusted its allocation by “overweighting” technology stocks and Asian companies, Zhao said. The MSCI World Index rose 14% in 2020 after recovering from steep declines earlier in the year.The company revamped its investment committees earlier this year, forming two new bodies to oversee investments in public and non-public assets, Bloomberg reported in January. The move was meant to improve decision-making efficiency, deepen cooperation across teams and better implement asset allocation strategies for the entire company, “so that everybody is on the same page,” Zhao said.Alternative AssetsWhile CIC is seeking to beef up alternative assets for their stable long-term returns, those investments fell by 2 percentage points to about 42% in 2019 as stock and bonds rallied. The measure climbed again last year, and the company committed a record amount of capital in private deals, including private equity and credit, heralding further increases, Zhao said. She declined to give details because the company has yet to release its 2020 annual report.As global markets emerge from the pandemic-wrought crisis, governments should pay more attention to their policies’ long-term impact on economic productivity, even though stimulus packages help relieve consumer pain and tide companies over, said Zhao, who’s also the fund’s chief strategy officer.“We believe the markets this year, overall, will be relatively stable for investors,” Zhao said. “But policy makers face major challenges this year and next” with limited room for adjustments amid already high long-term debts and low interest rates.Loose monetary policies have spurred market rallies in developed countries like the U.S. Zhao cautions that valuations need to be supported by economic growth and corporate earnings in the long run. “Adding stimulus alone won’t be enough,” she said.Guo Shuqing, chairman of the China Banking and Insurance Regulatory Commission, said this week he’s “very worried” about risks emerging from bubbles in global financial markets and the nation’s property sector. Bubbles in U.S. and European markets could burst because their rallies are heading in the opposite direction of their underlying economies and may face corrections “sooner or later,” he said.Global leaders should also enhance mutual trust and cooperation on issues from climate change to fighting Covid-19, Zhao said. “The global economy remains fragile and can’t afford miscalculations.”Bilateral FundsCIC also made more progress with its bilateral funds, a bid to forge stronger ties with partners to tackle rising protectionism. Four joint funds, launched respectively with counterparts in Italy, France, Japan and the U.K., all completed their first fundraising rounds last year and made a total of eight deals, Zhao said.Set up in 2007 to manage part of China’s foreign exchange reserves, CIC can’t make deals inside the country itself. But it can still benefit from the growth in the world’s second largest economy by investing in overseas-listed Chinese companies and non-Chinese assets that target the Chinese market or trade with China, Zhao said.One of the companies invested by the China-US Industrial Cooperation Fund, which CIC has contributed funding to, witnessed high growth in China last year as the pandemic depressed sales elsewhere, in another example of “how China can contribute to global growth,” she added.Despite the bilateral tensions between China and the U.S., the fund, started in 2017, has made two deals after raising $2.5 billion, with the second investment done last year in a U.S. manufacturing firm, she said, declining to disclose more details.(Updates with details about CIC’s bilateral funds in 15th graph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.

Ethereum, Litecoin, and Ripple’s XRP – Daily Tech Analysis – March 3rd, 2021

Ethereum

Ethereum slid by 5.31% on Tuesday. Partially reversing a 10.55% rally from Monday, Ethereum ended the day at $1,488.34.

A mixed start to the day saw Ethereum rise to an early morning intraday high $1,605.89 before hitting reverse.

While falling short of the first major resistance level at $1,627, Ethereum broke through the 23.6% FIB of $1,579.

The reversal saw Ethereum slide to a late intraday low $1,455.86.

The sell-off saw Ethereum fall through the 23.6% FIB and the first major support level at $1,465.

Finding late support, Ethereum moved back through the first major support level to reduce the deficit on the day.

At the time of writing, Ethereum was down by 0.44% to $1,481.85. A mixed start to the day saw Ethereum rise to an early morning high $1,489.04 before falling to a low $1,480.27.

Ethereum left the major support and resistance levels untested early on.

For the day ahead

Ethereum would need to move through the pivot level at $1,517 to support a run at the first major resistance level at $1,578 and the 23.6% FIB of $1,579.

Support from the broader market would be needed, however, for Ethereum to break back through to $1,570 levels.

Barring an extended crypto rally, the first major resistance level and the 23.6% FIB would likely cap any upside.

In the event of another breakout, Ethereum could test the second major resistance level at $1,667 and resistance at $1,700.

Failure to move through the $1,517 pivot would bring the first major support level at $1,428 into play.

Barring an extended sell-off, however, Ethereum should steer clear of sub-$1,400 levels. The second major support level sits at $1,367.

Looking at the Technical Indicators

First Major Support Level: $1,428

Pivot Level: $1,517

First Major Resistance Level: $1,578

23.6% FIB Retracement Level: $1,579

38.2% FIB Retracement Level: $1,292

62% FIB Retracement Level: $830

Litecoin

Litecoin rose by 1.80% on Tuesday. Following on from a 6.30% rally on Monday, Litecoin ended the day at $179.25.

Story continues

It was a mixed start to the day. Litecoin fell to a mid-morning low $171.13 before making a move.

Steering clear of the first major support level at $167, Litecoin rallied to an early afternoon intraday high $185.48.

Litecoin broke through the first major resistance level at $180.71 before hitting reverse.

Coming up against the second major resistance level at $185.40, Litecoin slid to a late intraday low $170.70.

Continuing to steer clear of the first major support level at $167, however, Litecoin moved back through to $179 to end the day in the green.

At the time of writing, Litecoin was down by 0.79% to $177.84. A bearish start to the day saw Litecoin fall from an early morning high $179.29 to a low $177.62.

Litecoin left the major support and resistance levels untested early on.

For the day ahead

Litecoin would need to move back through the $179 pivot level to support a run at the first major resistance level at $186.

Support from the broader market would be needed, however, for Litecoin to break back through to $180 levels.

Barring an extended crypto rally, the first major resistance level and Tuesday’s high $185.48 would likely cap any upside.

In the event of an extended breakout, Litecoin could test resistance at the 23.6% FIB of $195. The second major resistance level sits at $193.

Failure to move back through the $179 pivot level would bring the first major support level at $172 into play.

Barring an extended sell-off, Litecoin should steer clear of sub-$160 levels. The second major support level at $164 and the 38.2% FIB of $163 should limit the downside.

Looking at the Technical Indicators

First Major Support Level: $172

Pivot Level: $179

First Major Resistance Level: $186

23.6% FIB Retracement Level: $195

38.2% FIB Retracement Level: $163

62% FIB Retracement Level: $110

Ripple’s XRP

Ripple’s XRP fell by 2.24% on Tuesday. Partially reversing a 7.04% rally from Monday, Ripple’s XRP ended the day at $0.43624.

A bullish start to the day saw Ripple’s XRP rise to an early morning intraday high $0.45574 before hitting reverse.

Falling short of the first major resistance level at $0.4624, Ripple’s XRP slid to a late afternoon intraday low $0.42228.

Steering clear of the first major support level at $0.4213, Ripple’s XRP moved back through to $0.436 levels to reduce the deficit.

At the time of writing, Ripple’s XRP was down by 0.80% to $0.43277. A bearish start to the day saw Ripple’s XRP fall from an early morning high $0.43638 to a low $0.43277.

Ripple’s XRP left the major support and resistance levels untested early on.

For the day ahead

Ripple’s XRP will need to move through the $0.4381 pivot level to bring the first major resistance level at $0.4539 into play.

Support from the broader market would be needed, however, for Ripple’s XRP to break back through to $0.45 levels.

Barring an extended crypto rally, the first major resistance level and Tuesday’s high $0.45574 would cap any upside.

In the event of an extended rally, Ripple’s XRP could test resistance at the 38.2% FIB of $0.4632 and resistance at $0.47. The second major resistance level sits at $0.4715.

Failure to move through the $0.4381 pivot would bring the first major support level at $0.4204 into play.

Barring another extended sell-off, however, Ripple’s XRP should steer clear of sub-$0.40 levels. The second major support level at $0.4046 should limit the downside.

Looking at the Technical Indicators

First Major Support Level: $0.4204

Pivot Level: $0.4381

First Major resistance Level: $0.4539

23.6% FIB Retracement Level: $0.5320

38.2% FIB Retracement Level: $0.4632

62% FIB Retracement Level: $0.3521

Please let us know what you think in the comments below.

Thanks, Bob

This article was originally posted on FX Empire

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