The Ethereum (ETH 3.38%). Cryptocurrencies reached a record high of $ 4,892 per token in November 2021. Since then, a brutal fix has lowered Ethereum’s price by 77%, below $ 1,200 per token in the last three weeks.
Should I get Ethereum in a hurry while it’s cheap, or is this just the beginning of a deeper rush? Let’s take a look.
Please give me a solid rule book
The crypto market is under great pressure. A surge in inflation, concerns about another recession, and a protracted pandemic keep investors away from high-risk assets.
In addition, the crypto market suffers from a lack of regulation. A strong legal and regulatory framework for trading, owning, mining, and using cryptocurrencies is superior to the loose rules in force today. Even a very strict system of trading restrictions and taxation can be a huge improvement. At present, many institutional investors will not touch Ethereum or friends until they know what the long-term tax burden and trading rules will be.
Therefore, Ethereum investors want the slow gear of the bureaucracy to shatter a little faster. A step towards a complete rulebook could ignite the entire crypto market.
Ethereum 2.0, also known as merge
The technology upgrade, formerly known as Ethereum 2.0, still remains in the book under a different name. Marge joins Ethereum’s main blockchain network with another network called the Beacon Chain. This chain uses a radically different method to validate transactions and replace slow, highly secure proof-of-work technology with much faster and more energy-efficient proof-of-stake (PoS) techniques.
This move addresses Ethereum’s biggest operational problem. Cryptocurrency power consumption is 99.95% lower. With the new system, owners can earn rewards by betting tokens. It also accelerates Ethereum transactions with an efficient system called sharding, paving the way for further upgrades.
Marge does not necessarily send Ethereum prices to the month immediately, but it is a decisive improvement to the technological foundation of cryptocurrencies that sets the stage for sustainable long-term growth. The date for this event has not yet been finalized, but it indicates that developers must arrive by the end of 2022.
Indeed, Ethereum is today’s purchase-little by little
As you can see, Ethereum has some potentially powerful growth drivers. At the same time, the corner of the market chosen by this blockchain network is full of smaller rivals.In the case of the so-called “Etherium Killer” Cardano (ADA 0.76%). When avalanche (AVAX 7.43%). Ethereum could lose a significant portion of the smart contract market if it could win the developers before the merge took place. Even with a fully upgraded Ethereum ecosystem with PoS verification and sharding, regaining a lost project can be a daunting task.
And who knows exactly where the Ethereum price chart will go next? This nearly a month outage at around $ 1,200 per token could serve as a platform for initiating a sustained rebound. Or it could be a temporary rest level on the way to even greater discounts. Currently, the power of macroeconomics is drawing the chart. It can take years for Ethereum’s pricing to truly reflect its use in decentralized finance, cloud-based games, and other real-world applications.
The advantage of Ethereum’s pioneers has created a large developer platform, and this unique advantage should keep cryptocurrencies in place for the next few years. Building a small position while Ethereum is changing hands for less than $ 1,200 can be profitable in the long run.
But I’m not saying you should bet farms on Ethereum today, back up trucks, or save your life. This is still a speculative investment and could go down further, and there is no guarantee that the token will be fully recovered. This promising yet dangerous situation requires patience and caution.
As the price chart evolves, buying Ethereum in a few small bytes may be the best idea here. That way, you can take advantage of both. The lower the price, the more you can enjoy the opportunity to buy more at a better price. When it goes up, you can celebrate your interests instead. And as Ethereum’s long-term story evolves, you’re always free to speed up your investment or stop buying.