Last week, analysts wondered when the Ethereum price will return to growth. Since Bitcoin has already started to rise in price, rising to $ 40,000, it seemed that the second most popular cryptocurrency should follow suit. Things were going very badly, because the ether did not grow, but fluctuated, constantly falling to ultra-low values. Despite the Ethereum price trading at $ 2,200, there was still hope for a correction. As it turned out, the problems of Chinese miners could not but affect the bitcoin rate, and after that the Ethereum price went down. Today, for the first time in a month, it fell below $ 2,000, which was a real disappointment for cryptocurrency optimists.
Video card shortage plays a role in Ethereum price prediction
You should understand that all this is happening against the background of a record decline in the number of active miners. We can say that since April 2021, things have not been so bad. Only then did the miners actively arrive, increasing the difficulty of mining, and today they leave the sinking ship together with the captain in the form of large investors and sailors, whose role is played by Chinese miners who close their farms with no hope of returning to the old days.
Ethereum price prediction depends on high transfer commissions
By the way, the Ethereum price for gas is still high, which does not allow many of those who have only a couple of hundred dollars in their accounts to withdraw them to paper money. If you look at the picture in detail, you can see that mining is becoming less and less profitable. So, over the past month, the real earnings of farmers have fallen by three times. You can state as much as you like that the price of Ethereum brought by the video card has not decreased, but has become even higher.This is the wrong calculation principle, because cryptocurrency has not been and never will be a means of payment. in grocery stores. This means that first they need to be converted into real money, but this is a huge loss.
Likely scenarios for the Ethereum price
The bottom line is that the number of miners is disproportionately reduced compared to the lower Ethereum price. So, at the beginning of May, when the price of the cryptocurrency exceeded $ 4,000, the difficulty was 7.7 units, but after the collapse and even today it remains at the level of 6.72. Apparently, the bulk of miners believe in the return of the Ethereum price. The guys continue to dig, hoping to sell the coins several times more expensive. Whether they will succeed is a big question, because tomorrow the Ethereum price may collapse to $ 1,500, and then they will have to put off their last pennies at any cost.
Chinese crackdown on miners puts a pressure on crypto’s prospects
The determination of the Chinese government in the fight against miners can only be envied. Provincial leaders are tightening the screws, and some have already kicked out the miners. Against this background, bitcoin rushed down on Monday, approaching the value of 32 thousand dollars. At this time, gamers nervously pounded on keyboards, cursing the miners and wanting them to go broke as soon as possible. It seemed that the victory over the universal evil was already close, because on Tuesday the market was gripped by panic. Traders rushed to withdraw the cryptocurrency, and the Whales were frankly nervous. The bitcoin price dropped below 29,000 and Ether slowly climbed to the $ 1,700 level.
If you were waiting for the further fall of the cryptocurrency, then this will not happen yet.It is not clear who how, but with incredible efforts he stopped the fall at around 28,500, and after that, the value of Bitcoin also skyrocketed. At the time of this writing, the first cryptocurrency, the Ethereum price, is trading at $ 32,550, which is 4,000 above critical values. Ether surpassed $ 1900, and dreams of buying a video card at the recommended price began to slowly melt away.
This is not a financial advice. The author owns some of the assets mentioned in the article.