Oh yeah you have no idea the crypto market in general is completely irrational. Like there's a popular crypto game that had 600 million or so worth stolen. An Investor discovered it first and hedged against betting the value of the company would drop when everyone found out but it actually went up, and the investor lost a ton of money. The company has real way of getting the money back and the game is starting to tank and yet people are investing in it like crazy.Perhaps I don't understand the mining "community" well enough to say this. But I suspect that many miners are not so smart. When crypto prices boom, GPU prices also go up. It makes little financial sense. It's like buying an asset at inflated prices, when they are only going to be at that level for a few weeks before dropping. I suspect that many noobs decide to get into mining when prices are in the bubble stage. It takes months for a miner to make back their money on GPU and energy costs.
Isn't the sensible thing to mine when prices are low and then sell when they become high? And by sell I mean sell both the tokens and the GPUs.
Thus I don't think miners will be as rational as you think. They will FOMO when ETH goes back up in value.
Nothing makes sense in crypto land and everyone is bat **** stupid