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.

Second Ethereum ETF Filed in Canada

A second preliminary prospectus for an ether exchange-traded fund (ETF) has been filed Tuesday by Evolve Funds Group in Canada.

In an announcement, the firm said it has filed a preliminary prospectus with the Canadian securities regulators for the ETF that, if approved, would give investors exposure to the daily price movements of the U.S. dollar price of ether.

On Thursday, CI Global Asset Management filed a preliminary prospectus in Canada for what would be, if approved, the world’s first ether ETF.

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Back in February, the Ontario Securities Commission approved Evolve’s bitcoin ETF, which became the second such product to be approved in Canada and is now trading on the Toronto Stock Exchange. The first ETF to be approved by regulators was Purpose Investment’s bitcoin ETF, which was launched on Feb. 19.

“Ether is the building block for a revolution in digital finance which is still in its infancy,” said Elliot Johnson, chief investment officer and chief operating officer at Evolve ETFs. “Ethereum is the most actively used blockchain, with ether being used to pay for transaction fees and computational services.”

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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