I recently got back into Minecraft and dedcided to screw around with my favorite thing- Redstone. A few minutes in I noticed my FPS was alarmingly low, averaging around 30 FPS. My normal fps while playing is around 250. I flicked one graphics setting down one notch and my fps jumped back to around 250, so I kept playing. THEN a few minutes after that I noticed my FPS was hovering around 30 again. I flicked the exact same graphical setting UP one notch and it went back to 250 FPS. Then I watched my FPS counter while doing nothing at all in game. It kept going down around 10-ish FPS per couple seconds.
By changing that setting you're rerendering all 32x32 chunks around you. First you get good fps until all 32x32 chunks are rendered. Turn down render distance.
i second tails. i have the exact same specs as you have (i5 7400, gtx 1060 3gb, 2gigs ram allocated) and i run other graphics settings max and render distance 12 and never have any problems at all. Also i run at 1080p resolution (1920x1080)