Ever since the Ethereum Merge timeline became unpredictable in the recent past, miners have found it difficult to carry out their operations. In fact, the all-important “difficulty bomb” in the merge has been delayed several times by the developers in the past.

This made life difficult for operators in Ethereum mining. The Difficulty Bomb is a piece of code in the Ethereum protocol designed to increase the difficulty of mining ETH periodically.

Since 2017, the implementation has been postponed no less than six times. Most recently, the following difficulty bomb schedule was set for August.

Ethereum mining less profitable

Meanwhile, the ETH hash rate has fallen 10% since April, making it less rewarding for mining operators. According to data from CryptoQuant, Ethereum’s hash rate took a 10% hit as profits fell in recent times.

“The triple toxic mix of reduced revenue, higher operating costs and the impending merger has caused some miners to shut down their mining operations.”

This phenomenon could expand in the near future if prices fall even further, as speculated. The ETH price recently saw a bottom of $900, from a price range of $3,500 just three months ago.

The Ethereum merge is a highly anticipated update on the network. The merger standardizes a new proof-of-stake (PoS) consensus mechanism that changes the existing proof-of-work (PoW) mechanism. Here miners discover new blocks and then integrate them into the blockchain.

Short Term Ethereum Price Trend

At the time of writing, Ethereum is trading at $1,142.18, up 5.20% in the past 24 hours, according to CoinMarketCap. As a key indicator of traders anticipating further price declines, net deposits on exchanges are low compared to the 7-day moving average. Also, lower deposits can be interpreted as lower selling pressure.

In addition, the ETH index for fear and greed is at extreme levels of anxiety. This could mean that there is a widespread expectation that the Ethereum price could fall further.

Anvesh reports major crypto adoption announcements by institutions and popular personalities. Anvesh has been associated with the cryptocurrency industry since 2016 and is a big proponent of decentralized technologies. Follow Anvesh on Twitter at @AnveshReddyBTC and contact anvesh (at) coingape.com

The content presented may contain the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or publication is not responsible for your personal financial loss.

This post Data Reveals Shocking State Of Ethereum Mining, Here’s Why:

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