Panic in altcoin market as Ethereum miners dump their GPUs
Troubling signs for Ethereum as it nose-dived below the critical support level amid a significant amount of profit-taking, down by 5%.
Institutional investors’ weak buying pressures is yet to bail the leading altcoin, as weekly crypto investment product volume drops to its lowest level in many months.
At the time of writing this report, Ethereum was ranging between $1,980- $2,050 price levels on the FTX exchange with a daily trading volume of $17. 2 billion. The flagship altcoin has posted a weekly loss of 14%.
Investors are reducing their crypto exposure significantly as former miners in China dump their GPUs primarily used for blockchain mining in boosting speed and efficiency. This further suggests that at least some of the mining capacity will likely not return.
Ethereum miners are also trying to sell those computing machines featuring RTX 3060 mobile GPUs bought out so quickly in Q1. Current selling prices for these laptops are around $1,000 but can go even lower.
Investors had earlier increased their buying pressure on Ethereum as it has become the most popular and most-used development platform and posts the biggest recorded real use-case among all smart contract applications.
Ethereum, the second most valuable crypto asset has already fallen by more than half, with a recent chart pattern pre-empting more downsides as it struggles to hold above $2,000 per Ether token.
The most popular altcoin is a global, open-source platform for decentralized applications. In other words, the vision was to create a platform that anyone can build applications in a decentralized manner, while data is distributed and publicly accessible.