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Ethereum Price Extends Slide as ETH Mining No Longer Profitable

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Ethereum’s slide accelerated on Wednesday, with prices falling below $200 for the first time in 11 days as crypto markets booked heavy losses across the board. A profit crunch in the ether mining business is also adding to the growing headache over the protocol’s future.

ETH/USD Update

Ether’s price has declined sharply in the last few hours, more than offsetting a stable overnight session that saw values hold relatively steady. Over the past 24 hours, Ethereum has dropped 9.4% to $189, according to CoinMarketCap. That’s the lowest level in over a month. The selloff was accompanied by a notable uptick in daily trade volumes, with more than $1.7 billion worth of ETH trading hands on virtual currency exchanges. BitForex, LBank and ZBG were the biggest markets for ETH trades.

The value of ether also fell sharply against bitcoin. At the time of writing, ETH/USD was priced at 0.0311, down 5.1% compared with Tuesday.
At current values, Ethereum has a total market capitalization of $19.8 billion, which is roughly $1 billion higher than XRP, the third largest cryptocurrency by market cap.

Mining Ethereum No Longer Profitable

The business of mining ether and other cryptocurrencies using graphic processing units (GPUs) is no longer profitable, according to analysts at Susquehanna, a global quantitative trading firm.

In a note to clients, the firm said mining ether using high-priced GPU cards produced zero profits as of November. Last summer, mining a single unit of ether generated $150 in profit. Ether’s year-long bear market and the substantial drop in the network’s hash rate have contributed to the dwindling profit margins. In general, higher hash rates boost miners’ incentive for finding the next block.

As one might expect, declines in the crypto-mining business have negatively influenced sales at leading GPU makers. Nvidia Corp, a leading chipmaker, has seen its cryptocurrency-related revenue plunge by $100 million quarter-on-quarter. According to Susquehanna, Nvidia’s crypto-related revenue in Q3 is “likely close to zero.”

“We estimate very little revenue from crypto-related GPU sales in the quarter, consistent with management’s prior commentary that they were including no contribution from crypto in their C3Q18 outlook,” Christopher Rolland said in the note, as quoted by CNBC. “3Q18 mining profitability continued to decline, as Ethereum prices have fallen more than -70% since the beginning of 2018.”

The crypto market downturn has forced Nvidia to pull out of the mining business. Colette Kress, Nvidia’s CFO, acknowledged earlier this year that the company now expects “a negligible contribution” from cryptocurrency-specific products going forward.

As Hacked reported in the spring, Nividia’s first-quarter chip sales to crypto miners reached $289 million, far exceeding estimates.

Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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4.6 stars on average, based on 696 rated postsSam Bourgi is Chief Editor to Hacked.com, where he leads content development for one of the world's foremost cryptocurrency resources. Over the past eight years Sam has authored more than 10,000 articles and over 40 whitepapers in the fields of labor market economics, emerging technologies, cryptocurrency and traditional finance. Sam's work has been featured in and cited by some of the world's leading newscasts, including Barron's, CBOE and Forbes. Contact: sam@hacked.com Twitter: @hsbourgi




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Analysis

Crypto Update: Another Rally Attempt in Crypto-Land

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The major cryptocurrencies are all trading slightly higher today, following two bearish days that brought them back to last week lows, and for now, another breakdown has been avoided, despite the overwhelmingly bearish broader picture. The modest bounce left our trend model on sell signals across the board, and odds continue to favor new lows in the coming period, so traders and investors should remain defensive here.

The top coins are trading well below the weekend bounce-highs and without new swing highs, the short-term trend also remains clearly bearish, even considering the deeply oversold long-term momentum readings and the abysmal sentiment. So while a larger scale bounce remains possible in the coming weeks, perhaps following a failed breakdown pattern, bulls should still be patient until we sell clear technical improvements in the segment.

With that in mind, traders and investors shouldn’t enter positions even in the slightly stronger coins, and odds still favor the continuation of the bear market, with new lows likely in the coming days. That said, a successful test or a failed breakdown could trigger a larger scale correction, with the broader picture still being deeply oversold and with investor sentiment still being very negative. For now, there is no sign of an imminent rally, with all eyes on the $3000 in Bitcoin.

BTC/USD, 4-Hour Chart Analysis

Bitcoin rallied as high as $3450 today, but it failed to get close to the $3600 resistance and the weekend high, so the short-term downtrend remains intact despite the bounce. For now, our trend model is still on sell signals on both time-frames, and traders should stay away from entering new positions here, with the long-term picture also being clearly bearish.  Further resistance is ahead in the $4000-$4050 zone, while key long-term support is found near the $3000 price level.

ETH/USD, 4-Hour Chart Analysis

Ethereum is stuck below the key $95-$100 zone even following today’s bounce, keeping the coin on a short-term sell signal in our trend model. Odds still favor a move towards the next major support zone between $73 and $75, and only a quick recovery above the primary resistance zone could change the short-term trend.

The steep long-term downtrend is clearly intact in the coin, and traders and investors should still not enter new positions here, with further strong resistance zones ahead near $120 and $130.

Altcoins Avoid Breakdown but Strong Resistance Zones Lie Ahead

Dash/USDT, 4-Hour Chart Analysis

Despite yesterday’s weakness, last week’s lows held up even in the relatively weaker majors, and although that’s an early sign of stability, it’s not enough to warrant upgrades in our trend model. With still no bullish leadership present in the segment the continued technical weakness in the lagging coins, such as Dash reinforces our bearish long-term view.

XRP/USDT, 4-Hour Chart Analysis

Ripple only experienced a weak bounce, and although it continues to trade near the $0.30 level, the coin is still among the relatively weak coins from a short-term perspective and the renewed long-term sell signal is also in place.

We still expect a move towards the prior bear market low near $0.26, with a weaker support level found above that near $0.28, and traders and investors shouldn’t enter positions here, with resistance levels above $0.30 ahead at $0.32, $0.3550, and $0.3750.

Litecoin/USD, 4-Hour Chart Analysis

While Litecoin managed to hold up above its recent swing low and the $23 support level, it remains in steep short- and long-term downtrends, and we would need to see significant technical strength for even a short-term trend change.

Our trend model is on sell signals on both time-frames, and below $23, the next major support zone is found between $20 and $20.50 with strong resistance ahead near $26 and between $30 and $30.50.

Featured image from Shutterstock

Disclaimer:  The analyst owns cryptocurrencies. He holds investment positions in the coins, but doesn’t engage in short-term or day-trading, nor does he hold short positions on any of the coins.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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4.7 stars on average, based on 414 rated postsTrader and financial analyst, with 10 years of experience in the field. An expert in technical analysis and risk management, but also an avid practitioner of value investment and passive strategies, with a passion towards anything that is connected to the market.




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Analysis

Crypto Update: New Lows in Sight Again as Slide Continues

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The cryptocurrency segment continues to be under heavy selling pressure following the weekend rally attempt, and although all of the majors are still above last week’s lows, the strong short-term downtrend remains dominant. The long-term picture is overwhelmingly bearish as well, and there are coins showing meaningful relative strength, so sellers are clearly still clearly in control of the market, and the lack of leadership is still apparent.

With that in mind, traders and investors shouldn’t enter positions even in the slightly stronger coins, and odds still favor the continuation of the bear market, with new lows likely in the coming days. That said, a successful test or a failed breakdown could trigger a larger scale correction, with the broader picture still being deeply oversold and with investor sentiment still being very negative. For now, there is no sign of an imminent rally, with all eyes on the $3000 in Bitcoin.

BTC/USD, 4-Hour Chart Analysis

Bitcoin has been drifting lower ever since touching the $3600 level during the weekend, and the now the most valuable coin is close to its prior bear market low, pushing the total value of the market back below $110 billion. Today’s selloff took the coin below $3400, and a test of the next long-term support zone near $3000 is now likely in the coming days.

At least a move above $3600 would be needed for a meaningful improvement in the coin’s technical setup, but for now, sellers remain in control on both time-frames and our trend model is on clear sell signals both short- and long-term, with further strong resistance ahead in the $4000-$4050 zone.

ETH/USD, 4-Hour Chart Analysis

Ethereum is also close to last week’s bear market low and the coin is clearly stuck in a steep short-term downtrend with no sign of relative strength or bullish momentum since the failed weekend rally. The coin is also trading below the strong $95-$100 support/resistance zone, and with support just being found between $73 and $75, a new low is likely in the coming days.

Traders and investors should still stay away from entering new positions here, with further strong resistance zones ahead near $120 and $130.

Litecoin and Ripple on the Verge of Breaking Down

XRP/USDT, 4-Hour Chart Analysis

The major altcoins are all in week technical setups, and even Ripple, which is in a slightly better long-term position, is looking bearish from a short-term perspective. The second largest coin is trading below the $0.30 level, and a test of the next zone near $0.28 seems imminent.

The prior bear market low near $0.26 could also be in danger in the coming period, and traders and investors shouldn’t enter positions here, with resistance levels above $0.30 ahead at $0.32, $0.3550, and $0.3750.

Litecoin/USD, 4-Hour Chart Analysis

Litecoin is very close to breaking down below the $23 support zone today, and the coin is showing relative weakness compared to the other major, as it was the case ever since last week’s bearish shift. Our trend model remains on sell signals on both time-frames, and a new low seem very likely in the coming days, so traders shouldn’t enter new positions here despite the deeply oversold long-term momentum readings. The next major support zone is found between $20 mad $20.50 with strong resistance ahead near $26 and between $30 and $30.50.

Stellar/USDT, 4-Hour Chart Analysis

Since the key breakdown in Stellar, the coin remained relatively weak, and the strong selling pressure is still apparent in its market. The recent rally attempt failed to recapture even the $0.125 resistance, and now a dip below $0.11 and a test of the $0.10 level seems likely in the coming weeks. Further strong resistance is ahead just below $0.14 and traders and investors should still not enter new positions here.

Featured image from Shutterstock

Disclaimer:  The analyst owns cryptocurrencies. He holds investment positions in the coins, but doesn’t engage in short-term or day-trading, nor does he hold short positions on any of the coins.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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4.7 stars on average, based on 414 rated postsTrader and financial analyst, with 10 years of experience in the field. An expert in technical analysis and risk management, but also an avid practitioner of value investment and passive strategies, with a passion towards anything that is connected to the market.




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Altcoins

Ethereum Price Analysis: ETH/USD is a Sitting Duck Under $100; with Jitters Heading into Constantinople Upgrade

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  • ETH/USD is subject to further downside, as the price produces another range-block.
  • There is some nervous anticipation across the community heading into the Constantinople upgrade.

ETH/USD is a sitting duck underneath the big psychological $100 mark. Just like every other cryptocurrency, Ethereum (ETH) remains firmly on the back foot. Over the past five weeks, the price is down a chunky 63%, from the pick up in downside pressure on the 7th November. Despite a minor form of stabilization over this past few days now, ETH is still very much vulnerable. It has been moving within consolidation mode, as seen across the board, a range-block formation can be observed. This behavior suggests that is susceptible to a breakout south.

Constantinople Upgrade Jitters

Following the Ethereum developers confirming the Constantinople upgrade, there has been some concerns. It was last week noted after a developers call that this will take place in mid Jan 2019, as covered via Hacked . Across the community things appear to be somewhat jittery heading into the upgrade. One thing that has raised eyebrows is the reward for miners. This is anticipated to be brought down to 2 ETH from 3 ETH. Given the fact also the plummet in the Ethereum price this year, this in addition does not help things. There is also speculation that, should there be much disagreement, the network could even split, as an extreme case.

Technical Review – ETH/USD

ETH/USD 4-hour chart

Looking via the 4-hour chart view, price action has narrowed over the past four days. This coming after further intensity hit ETH/USD to the downside. As we have seen time and time again, such price behaviors following excessive movements. It tends to be exhaustion from the sellers, allowing time for consolidation of the price, before going in for the kill.

Price action is moving within a range-block, which is subject to another explosive move lower, as it currently appears. The psychological damage of ETH sitting below the big $100 mark does not help sentiment either.  Support to the downside within the current range, should be noted at $84. Near-term resistance is seen at the $100 mark.

ETH/USD weekly chart

As described, the major near-term support is seen at $84. A break to the downside could open the door to another wave of sellers. The weekly chart view looks worrying, as should a breach occur at the mentioned support, the price could plummet. Eyes would next be on the $65 territory; ETH/USD last traded her at the start of May 2017.

Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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4.5 stars on average, based on 81 rated postsKen has over 8 years exposure to the financial markets. During a large part of his career, he worked as an analyst, covering a variety of asset classes; forex, fixed income, commodities, equities and cryptocurrencies. Ken has gone on to become a regular contributor across several large news and analysis outlets.




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