Is it a good time to purchase Ethereum or would you be better off waiting? Since the major dip in the market last January, quite a number of people are unsure if they should buy Ethereum or other altcoins.
Ethereum Seems to Be Ramping Up
Ethereum has had an okay 2018. To illustrate, it hit $1,000 on January 4th. Then it began a long upward movement that saw it top $1,400, increasing its value over 40% in just six days. Then on January 16th, what some pundits are calling “bloody Tuesday“, the entire crypto market dropped sharply, including Ethereum which closed the day at $1,053.69. Following this massive market sell-off, markets continued to fall (most people stating the tax season as the major catalyst) and Ethereum fell below $400 in April. While Ethereum didn’t become the cheapest cryptocurrency, what this revealed was that it has a good support level at around $400. On March 29th, it did drop below that mark, but then bounced back and traded between $360 and $400 for nearly 10 days until it broke out and has been on a major uptrend since.
Ethereum vs Litecoin and Other Coins
If $360 is the base support level for Ethereum, then buying around that price is a great place to buy. If Ethereum is slightly under that number, it may very well be the most opportune time to buy Ethereum. The cryptocurrency has already demonstrated that it can outmatch the rest of the market, growing at unheard of rates. Early this year in January, it stood on its own with a steady upward price movement while Litecoin, Bitcoin, and Bitcoin Cash all had downward movements. This proves that Ethereum is not as reliant on Bitcoin as other coins are and might be able to break out of the marketwide trends and move differently.
Time to Buy Ethereum?
You might be wondering: Should I invest in Ethereum now? That is totally up to you. One one hand, Ethereum has had some very impressive highs that are well and good for profits. But on the other hand, the price of Ethereum right now is only a fraction of what it was at during the January highs of $1400. This is simply an illustration of the fairly recent price events of cryptocurrencies. In other words, this isn’t financial advice. If you are thinking about investing in Ethereum, just make certain you do your homework, understand what you are getting into and, needless to say, don’t invest money that you require to survive. Simply put, only invest what you can afford to lose. While cryptocurrencies aren’t going to disappear anytime soon, they are highly volatile so it’s best to invest with a long-term strategy in order to see some good returns. Do not put money in and then forget about it. Be vigilant and watch your investments daily, or set up price alerts and automatic sell orders when it reaches a specific price. Be smart and remain informed.
Further reading: A Short Exploration on How to Invest in Ethereum
Disclaimer: The information provided on this website does not constitute investment advice, or any other sort of advice, and you should not treat any of the website’s content as such. Nothing on this website should be taken as an offer to buy, sell or hold a cryptocurrency. You should conduct your own due diligence and consult with a financial advisor before making any investment decision. HybridBlock will not be held responsible for the investment decisions you make based on the information provided on the website.
“B2B reporter – Content Manager – Contributor – Fintech – Blockchain – Cryptocurrency”
Simon Chou is a B2B reporter and content manager specializing in technology and finance. He has worked with many clients in the fintech and blockchain space. He holds investment positions in bitcoin and other large-cap cryptocurrencies, and has been reporting on cryptocurrency since 2017. Currently, Simon is the content manager for a major cryptocurrency exchange @HybridBlockHQ.