Ethereum price rally continues despite drop in mining profitability

  • Miners on the Ethereum network witnessed a decline in profitability as the price of Ethereum slumped in the recent crypto bloodbath. 
  • Electricity consumption of some of the largest cryptocurrency networks dropped by as much as 50% as miners were forced to shut shop. 
  • Ethereum price witnessed a trend reversal and analysts predict a continuation of ETH uptrend. 

Ethereum price rally continues despite the drop in mining profitability. With the decline in Ethereum mining profitability, electricity consumption dropped as nearly 50% of miners were forced to shut shop and stop their operation. 

Miners dropped off the Ethereum network as profitability declined

The recent crypto bloodbath resulted in a spike in overhead costs for miners. Miners on the Ethereum network, faced hardships as Ethereum price plummeted in the recent crypto bloodbath. With a decline in electricity consumption, experts predicted that miners are pulling out of the two large cryptocurrency networks- Bitcoin and Ethereum. 

On May 23, electricity consumption on the Ethereum network was 93.98 TW/h and there was a steep decline soon after. The network’s electricity consumption has declined nearly 50%, to 47.43 TW/h in the past month. 

Energy consumption on the Ethereum network

Ethereum price witnesses trend reversal, breaks out in a rally

Based on the daily Ethereum price chart, analysts at Inside Bitcoins noted that ETH recently crossed above the 21-day moving average and the next resistance is at $1,400. This could open doors for increase to $1,600 level and analysts have set bullish targets at $1,800, $2,000 and $2,200. 

Analysts have predicted a climb towards the upper boundary of the channel, and predicted a continuation of Ethereum price uptrend. 

ETH-USD price chart

ETH-USD price chart

FXStreet analysts have identified the upside target for Ethereum price in the current uptrend. For more information, watch this video.