Is Now a Good Time to Buy Ethereum?

This year’s decline in the stock and cryptocurrency markets may be attributed to growing inflation, central bank rises, and the looming threat of a global recession. Ethereum has dropped from its record high of $4,891 in November 2021 to its current price of less than $1,000, a decrease of over 80%.

Ethereum is one of the poorest performing investments due to its 47% decline over the last six months. It’s possible that the consistently high inflation in the United States and the disconcerting news that price hikes are engrained in the economy as a whole are to blame for the drop. The wage-price spiral is a relatively new phenomenon that fits this category.

The Federal Reserve will need to continue its programme of gradually raising interest rates as long as inflation remains high. This contractionary monetary policy raises borrowing costs, reduces demand, and is bad for stocks and cryptocurrencies. In addition, it increases the risk of a recession.

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After the September 15, 2022 merge, Ethereum’s consensus mechanism shifted from proof-of-work to proof-of-stake. No problems were encountered during the network’s upgrade. The purpose of the event was to increase the price of ETH, but it was unable to counter the persistent gloomy sentiment in the cryptocurrency market this year. Unfortunately for ethereum, cryptocurrency exchange FTX went bankrupt in November.

We do not think the Fed is done with its aggressive increasing cycle, which increases the chance of a recession. That the crypto market is experiencing the strain of the macroeconomy is shown by this trend. The question for 2022–2023, then, is how low can cryptocurrencies go? How much, if any, of a reduction have we seen, and is there still room for significant price drops?

In general, the current macro climate is not favourable for ethereum. There are several Ethereum on-chain/flow metrics, and we examine them all. Our outlook for ETH in the near future is mixed, ranging from neutral to negative. As a result, right now is not a good time to buy Ethereum if you want to keep the currency for less than four weeks.

Is Ethereum a Good Investment in 2023?

Many are debating whether or not they should invest their money into Ethereum after watching its value climb by thousands of percent since its launch. After hours of research, we figured out how to fix the problem.

As the cryptocurrency market grows, the number of apps utilising the Ethereum network is predicted to increase dramatically. One may reasonably expect this to increase demand for ETH tokens and hence raise their price. In addition, sharding’s implementation in 2023 will significantly increase the network’s throughput, giving programmers additional reason to build Ethereum-based apps.

Investing in Ethereum seems like a good idea based on the numbers we ran. Even if Ethereum’s price is very volatile over the next several months, the cryptocurrency might still end up doing well in the long term.

How Ethereum Has Performed Since Launch & in 2023

Ethereum’s value has skyrocketed since the cryptocurrency’s inception in 2014. Those that committed to the investment for a significant amount of time experienced significant returns as a consequence of the asset’s appreciation. This makes ETH a great cryptocurrency to invest in for the long run, since buyers can expect a return regardless of market conditions.

Investors who bought at the asset’s 2018 high would have to wait until at least 2021 to get a return on their investment. Investors who bought Ethereum (ETH) at its all-time high missed out on potential gains of about 275%, or 91.66% annually. A return of 482% may be expected for those who invested at the 2017 high.

An investor who bought Ethereum (ETH) at the peak of the 2021 bull would be down around 75% at today’s values, but because to recent improvements to the Ethereum network, which significantly improved efficiency, that investor still has a good chance of making significant returns in the long run.

People who purchased ETH in January 2022, at its lowest point, would be down around 53% today, but after holding for a few years would experience annualised returns equivalent to ETH’s prior run. This suggests that Ethereum (ETH) would be the best currency to buy in the current market decline.

  • Ethereum’s value has surged by thousands of percent since its inception.
  • In 2018, an investor who bought Ethereum at the peak in 2017 would have had a return of 482%.
  • In 2018, an investor in ETH would have had a return of 91.66% on their initial investment.
  • When it reaches an all-time high in 2021. The price of ether (ETH) has been falling consistently.
  • The Ethereum price dropped in 2022 like the rest of the market.

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How to Buy Ethereum

1. Choose a Cryptocurrency Exchange

Instead of using a bank or an online brokerage like Fidelity or Vanguard to acquire cryptocurrencies, you’ll need to use a cryptocurrency trading platform. Bitcoin traders may choose from a plethora of different exchanges, ranging from basic platforms to advanced trading interfaces.

Due to Ethereum’s popularity, ether can be bought on almost every cryptocurrency exchange. You’re safer trading on established platforms like Coinbase, Gemini, or eToro. Furthermore, unlike most other cryptocurrencies, Ethereum may be bought with dollars using e-wallets like PayPal and Venmo. Before committing to a platform, it’s vital to do some research and evaluate their prices, security features, and other offerings.

2. Fund Your Account

When opening an account with a cryptocurrency trading platform, you will likely be required to provide personal information and verify your identity. After that, you may add money to your account by linking a debit card or your online banking. The final cost might change based on the strategy you choose.

You should not consider your Ethereum wallet any different from any other investment account just because you have deposited funds into it. Get some Ether if you’re serious about investing.

FAQs

Is now a good time to buy ethereum?

In the next two to four weeks, we see a mixed to bearish market for trading Ethereum. As a result, we expect prices will either stay the same or fall. We see recession fears as a risk to ETH for 2022-3 in general, so if you’re looking at the market with a medium-term time horizon, now may not be the best time to buy ethereum. For the next three years, we have a generally optimistic outlook on Ethereum as an investment. What this means is that price rises are expected to occur gradually over time.

When was ethereum at its lowest?

A token of Ether had a record low price of $0.41 in October of 2016. Since then, Ethereum has seen a number of larger price spikes. In 2017–8, it hit a peak of $1,400, the first of two such peaks. From that point on, until the beginning of 2021, it never went lower than the $300-$400 range. A rising tide of optimism beginning in January of that year saw the price of the coin soaring beyond $4,000. ETH ultimately reached this threshold in the last minutes of 2021, continuing its rise to $4,780 in November of that year. The price of ETH has been volatile and mostly falling since then. We have seen a recent levelling down around roughly $1,080.

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What Ethereum be worth in five years?

The expanding popularity of cryptocurrencies and the anticipated improvements to the Ethereum network make an exact prediction unattainable, but it’s feasible that ETH could be valued roughly $4,733 in 2025 and around $6000 in five years’ time.

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