Ether may see a downside in mid-October 2021 as the major mining pool responsible for 15% Of the Network’s hashrate, sparkpool, shuts down its operation in China. The market paid for more than 13000x contracts on ETH pricing with an expiry date of October 8, as noted by QCP.
Based in Singapore QCP Capital has hinted out in their Telegram channel that Ether may see a downside in mid-October. On Tuesday Asian trading day saw that market paid for more than 13000x contracts with an expiry date of October 8 over ETH price around $2500 to $2800 mark, noted by the QCP. Currently, at the time of writing ETH has a price of around $2900.
Ether may see a downside in mid-October 2021:
China’s newly launched crackdown is going after every crypto element. Yesterday, Alibaba announced to ban crypto mining rigs and now Sparkpool is going to end its operation in China according to an announcement by the firm on its WeChat page. The mentioned pool is providing a 15% hashrate of Ethereum Network. BePool is also going to comply with local rules and shut down its operation.
Some people are arguing that the update of Ethereum (EIP-1559) has already rolled out mining because of its shift from Proof of Work (PoW) to Proof of Stake (PoS). Some people were hoping that the mining of Ethereum will be irrelevant by the end of 2021. A community manager and developer at Ethereum has said:
If I was a miner, I would plan to break even by end of the year 2021.
It is a fact that so far it hasn’t done it so mining is really necessary until the update finishes the PoW. The layer-1s is also attracting the users to itself. People are moving to Layer-1s networks for better ROI (Return on Investment). On-chain data shows that Polygon has surpassed Ethereum in daily active users. A user tweeted.
Yesterday $MATIC eclipsed $ETH in daily active users for the first time.
0xPolygon: 351k DAU
ethereum: 326k DAU
These difficulties for Ethereum are increasing due to the zero transaction fee structure of Polygon and miners leaving. That’s why Ether may see a downside.