Should You Buy Ethereum While It’s Still Down?

Cryptocurrencies are generally volatile yet they have become a mainstream way of financial management all over the world. Being the second most valuable cryptocurrency, Ethereum has been developing as a promising investment opportunity in crypto markets for years. Among the other digital assets, Ethereum stands out by appreciating 480% since its launch.

Quick Insights

Ethereum

Since its launch in 2015, Ethereum has been growing exponentially, gaining the attraction of investment firms and payment applications. Beyond being a cryptocurrency, Ethereum also leverages blockchain technology.

Rather than the underlying fundamentals, there are numerous elements that affect the prices of Ethereum, such as market sentiment, news, legal/regulatory developments, etc.

However, consistent technological advancements and its obvious market presence have been making Ethereum attractive and a potential buy candidate. Learn how to invest in Ethereum and it will be useful for beginners.

Ethereum – Price behavior

Technically speaking, Ethereum made a quick rally in Jan 2024 from the low of 2200 to reach all the way up to its all-time high of $4000. Ever since Ethereum has been witnessing a price fall from the crucial highs of $4000.

• After peaking out in March this year at $4000, Ethereum had been on a consolidation range of $3000 to $4000 until this July.
• Ethereum broke out of the broad trading range downside in the first week of August at $3000, a key support level.

Ethereum – its strong fundamental track

Ethereum possesses strong fundamentals through continuous development towards becoming one of the top blockchains in the world.

• Ethereum has introduced groundbreaking features such as smart contracts and self-executing contracts. This enabled the creation of decentralized applications (dApps), and accelerated growth and innovation across various sectors, including finance, gaming, and supply chain.
• Tokenization is another crucial process of converting physical assets to digital on a blockchain. Though it has recently come into existence, the tokenization market is estimated to reach more than $10 trillion to offer a potential opportunity for blockchain platforms.
• Launching of tokenized fund BUIDL on Ethereum by the world’s largest asset manager BlackRock is the highlight of 2024. Analysts expect this key move to enable Ethereum to further enhance its long-term investment appeal in the coming years.
• The recent launch of Ethereum spot exchange-traded funds (ETFs) is a significant milestone in the history of Ethereum. It has further strengthened Ethereum’s short-term prospects and has increased investors’ confidence in the long term.
• Ethereum’s TVL – (Total Value Locked), the combined value of projects that are built on its blockchain network, is over $50 billion.
• One of the greatest advantages of the Ethereum network is its security. With the back of decentralization, Ethereum remains the most secure network in the world. Because developers prefer to build on secure networks amid increasing crypto hacks.
• The Merge, which transitioned the Ethereum network from Proof of Work (PoW) to Proof of Stake (PoS), helps in the reduction in usage of energy and promotes beneficial deflation.

Why Ethereum?

Ethereum is widely preferred for its strong fundamentals, which have boosted investor sentiments for years. There are specific factors that explain why Ethereum is a broad-based buy pick among other cryptocurrencies:

• Ethereum constantly works on new developments and takes advantage of the first mover in blockchain technology.
• Ethereum’s technological innovation and application versatility sets it apart from the other cryptocurrencies.
• Improved functionality and lower transaction fees make Ethereum a high-demand service provider on decentralized software protocols.
• Investing in Ethereum doesn’t just mean buying a cryptocurrency, but actually means investing in a blockchain platform that supports a range of applications.
• Ethereum’s technological versatility extends beyond cryptocurrencies to DeFi, games, and other businesses that integrate blockchain technology.

Read more: Is Cryptocurrency a safe investment?

Conclusion

Being a potential and compelling investment option, Ethereum has been preferred by most crypto traders even in the downtrend. Increased activity in the blockchain field and the launch of ETFs enhance the positive outlook for Ethereum in the long term. Considering the strong fundamental factors, the price looks attractive in the lows and hence buying may emerge in every fall.

Investors await Ethereum to commence a bull run at the end of 2024 as Ethereum boasts strong utility and clear planning for future developments. Ruling out the short-term inherent volatility, which is more common in crypto markets, Ethereum remains a long-term buy.