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Ethereum

Last Time This Metric Was This High, Ethereum Reached Its February High

Published

4 Monaten ago

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  • Bitcoin and Ethereum have both embarked on strong rallies in the past four months.
  • In the past month alone, ETH has gained approximately 80% while BTC has gained approximately 30%.
  • Both assets are some of the best-performing markets in 2020, which comes in spite of the pandemic.
  • An analysis by a Coin Metrics data scientist, though, may suggest that Bitcoin and Ethereum are reaching local highs.
  • The analysis found that a metric or a ratio is reaching highs not seen since the February high, prior to the March capitulation crash.

Ethereum Could Be Reaching a Medium-Term High—and Bitcoin Might Be Too

Ethereum’s price action over the past few months has undoubtedly been impressive. Shaking off the crash in March, the asset has gained 80% in the past month alone as the network’s fundamentals have seemingly become bullish.

An analysis by Jon Geenty of Coin Metrics, a blockchain analytics and data firm, though, may suggest that a high is near.

He shared the image below on August 18th. It shows Bitcoin’s macro price action, Ethereum’s price action, and a specific ratio of prices.

According to the ratio, the crypto market is nearing an “inflection point.” Last time this ratio was this high, the crypto market topped in February. The time before that, the price of Bitcoin and Ethereum consolidated for a number of weeks before heading higher. And the time before that was when Bitcoin and Ethereum reached peaks in the 2017-2018 crypto bubble.

“We are entering an interesting period for an indicator looking at new highs less new lows as a percentage of total assets – seeing levels seen only at major inflection points in the past… [This is] still significant as in the past this has signaled both large bullish and bearish moves.”

Chart of BTC's macro price action, ETH's price action, and a specific market ratio calculated by Coin Metrics analyst Jon Geenty.

Should history rhyme, ETH and BTC may soon plunge from their highs, potentially after pushing a bit higher.

Fundamentals Still Favoring Bulls

The fundamentals of the Bitcoin, Ethereum, and crypto markets, though, are still favoring bulls.

On Bitcoin, in particular, analysts have identified a staggering confluence of reasons to be optimistic about BTC’s prospects. Prominent Bitcoin proponent “Vortex” recently shared four of these reasons:

  • Adoption of SegWit has reached an all-time high.
  • The hash rate of the Bitcoin network has reached an all-time high.
  • The percentage of BTC in circulation that hasn’t moved in over a year has reached an all-time high.
  • Google Trends for “Bitcoin” and related keywords are starting to trend higher.

Of course, these aren’t directly reasons to be bullish on Ethereum. But as is the norm, ETH follows the price action of the market leader on a macro basis.

Featured Image from Shutterstock
Price tags: ethusd, ethbtc
Charts from TradingView.com
Last Time This Metric Was This High, Ethereum Reached Its February High





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Ethereum

Crypto enthusiasts could make $122K per year mining Ethereum with this setup

Published

1 Stunde ago

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Dezember 29, 2020

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Simon Byrne has taken at-home crypto mining to a whole new level as he looks to capitalize on Ethereum’s (ETH) enormous price potential. 

As first reported by Anthony Garreffa, Byrne has set up an ETH mining rig consisting of 78 GeForce RTX 3080 graphics cards. Although the RTX 3080 is marketed toward high-end PC gamers, crypto miners are using these powerful specs to enhance their capabilities.

With each card using roughly 300W of power, Byrne’s setup uses 23.4KW of energy. And that doesn’t even factor in associated costs like AC. All said, his electricity bill is estimated to run up to around $2,166 per month.

The RTX 3080 launched in September at a price of $699, but supply shortages have caused the per-unit cost to swell to $1,199. At the shortage price, that’s a price tag of $93,522 for Byrne’s setup.

Still, these costs could be offset by the operation’s mining capability. One GeForce RTX 3080 graphic card has a hash rate of around 83MH/s using Ethash, which should generate roughly 0.22236870 ETH per month, according to Garreffa. All 78 cards would therefore generate 17.3 ETH per month, which is equivalent to around $12,352 at today’s prices.

Stripping away the electricity costs, that’s roughly $10,200 per month or $122,000 per year. And that’s not factoring in Ethereum’s price potential during the next bull market.

Ether’s price zipped past $700 over the weekend, the first such move since mid-2018. The return of altseason, as some have predicted, could send ETH’s price even higher over the medium term as investors cycle from Bitcoin to other large-cap cryptocurrencies.