Source: PaxForex Premium Analytics Portal, Fundamental Insight
This year has started positively for crypto investors as many cryptocurrencies rising in the past few weeks.
Ethereum is now up more than 26% in 2023, after falling nearly 68% during last year. This increase is encouraging for investors, bringing hope that maybe the worst scenario of this crypto-winter is in the rearview mirror.
Ethereum was recently priced at just under $1,500 per token. However, many investors are hopeful about its potential, and there is a possibility that it could soar above $2,000. Does that mean it's a good time to buy?
Cryptocurrency as a whole is still largely speculative. No one can say for sure what its future will be, or if it will even exist in a decade or two. So when choosing where to invest, it is wise to concentrate on the cryptocurrency's long-term potential.
Ethereum is currently one of the strongest investments in the cryptocurrency sector. It has a unique set of advantages, including:
- Pioneer advantage: Ethereum was launched in 2015, long before competitors such as Solana, Cardano, and Avalanche. It helped it become one of the most widely used blockchains in the crypto industry.
- Best platform for dApps: Ethereum is also the most popular network for decentralized applications (dApps), including DeFi projects, NFT markets, and the metaverse. It is also an open-source blockchain, which means developers can create new projects on the network. If any of these projects take off, Ethereum will only benefit from it.
- Home for other cryptocurrencies: Ethereum can also host other cryptocurrencies on its network, and it hosts several well-known projects, including Shiba Inu, Polygon, The Sandbox, and Decentraland. If any cryptocurrency hosted on the Ethereum blockchain is going to be successful, that is only a plus for Ethereum.
Like any investment, Ethereum has its downsides. For example, the network continues to struggle with slow transaction speeds and high fees, which makes users unhappy.
But developers are working hard on updates to improve the blockchain. The long-awaited 2022 update, The Merge, went off without a hitch and successfully moved Ethereum from a proof-of-work protocol to proof-of-share. And an upcoming update, Shanghai, will help enhance the mining process.
Future updates to Ethereum are also expected to improve efficiency and reduce fees, with the most important of these updates scheduled for 2023 or 2024.
Whether you decide to invest in Ethereum now will depend on several factors, including your long-term prospects and risk tolerance.
Again, at the moment, all cryptocurrencies are still purely speculative, so despite all of Ethereum's advantages, there is no guarantee that the sector as a whole will thrive in the long term. But if you believe in Ethereum's potential and are willing to take the risk, now is a good time to buy.
However, before you invest, check your finances and your overall portfolio. Cryptocurrencies are notoriously unstable, and Ethereum is no exception. Don't invest anything you can't lose, make sure you are prepared to keep your money invested for a long time and prepare for more volatility in the short term.
Also, make sure the rest of your portfolio is well diversified. This will help protect your savings in case your crypto investments fail.
Ethereum can be a fantastic long-term investment, but there are never any guarantees in cryptocurrencies. By assessing your risk tolerance, it will be easier to decide if this investment is right for you.
As long as the price is above 1500.00, follow the recommendations below:
- Time frame: D1
- Recommendation: long position
- Entry point: 1676.05
- Take Profit 1: 1790.00
- Take Profit 2: 2000.00
Alternative scenario:
If the level of 1500.00 is broken-down, follow the recommendations below:
- Time frame: D1
- Recommendation: short position
- Entry point: 1500.00
- Take Profit 1: 1350.00
- Take Profit 2: 1200.00
