Ethereum price analysis: ETH/USD eyes $400.00 amid cryptocurrency sell-off; miners are deep in red
|- Bears are driving ETH lower, critical support within reach.
- Ethereum miners are losing money at current ETH exchange rate.
ETH/USD touched $416.00, the lowest level since August 2017. The coin has lost over 5% of its value amid widespread sell-off in the cryptocurrency market. The Cryptocompare data shows the spike in ETH volatility and trading volumes, while many people hope for a fresh buying interest at $400.00 handle. This is a critical support level, as once it is broken, the coin may move towards $320-$300 area.
ETH mining profitability is diminishing together with the price. It is as low as $0.0307 per day for 1 Mhash/sec as compared to $0.233 in January 2018, when Ethereum price was close to $1,400. Considering the cost of electricity, cost of equipment and other overhead costs, including taxes on mining applicable in some countries, most of ETH miners have been losing money for several months.
The situation is problematic, especially in the light of new ASIC mining rig being developed for ETH mining, which will lead to the centralization of the process and effectively force small miners out of the market to due to high equipment costs.
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