Data shows that in the recent past ETH prices have gone down by a whopping 20% in hashrate. This is documented to be the biggest drop this year and since its establishment in 2015. This drop was evident from January through February this year.
This has caused massive losses in Ethereum mining organizations. It has also led to a lot of stress in the individuals who take part in the activity, whereby some have resorted to turning off their GPUs, while others have resulted in transferring their ether to more profitable cryptocurrencies.
Miners have had to bear with the high cost of running the mining equipment. They are not in a position to cover the increasing cost of maintaining the hardware, electricity and other expenses. Cooling of these machines has been a daunting task since they produce a lot of heat during the mining period. All these costs have led to increasing losses.
The significant loss from $1100 to $400 and the stagnating price between $167 and $200 is a clear indication to investors that ETH market has achieved its production floor much like Bitcoin did in 2015. Such unpredictable price swings have negatively affected mining, some resulting in the closure of their businesses.
Currently, a few efficient ASICS have been developed to tackle mining of ether. However, these ASICS activities are not being displayed in the data confirming that they have not been active. This can be attributed to the bouncing hash power of other cryptocurrencies.
Most crypto enthusiasts can attest to the fact that cryptocurrency is still not stable and caution must be taken when engaging in it to avoid huge losses. However, for smart miners, this is a common occurrence that needs less attention, as they have well-organized plans to cushion them.