When is a good time to buy ethereum

Until at least one of these problems is resolved, the crypto market will probably struggle to escape this bear market. This exact prediction will likely be off because it is using technical analysis of past performance to extrapolate future prices. Timing the market is famously impossible because it is so hard to predict the price of an asset especially in crypto in the short- or even medium term.

Luckily, a fantastic strategy called dollar-cost averaging is used by tons of smart investors to help manage a bear market. Instead of making a few big investments when they think the asset has reached a bottom, investors use dollar cost averaging to make many smaller regular purchases.

This process spreads out their buys at different price points to lower their cost basis and diminish the effect of large price swings. In the end, if the asset eventually keeps moving up, the investor using dollar cost averaging wins out essentially every time. Will Ethereum ever reach all-time highs? This is much easier than giving an accurate Ethereum price prediction.

The answer has historically always been yes. It also may take years for it to reach all-time highs again. Ethereum has proven itself to be an amazing foundation that inspires innovation and rapid growth. Competitor blockchains have similar general-purpose functionality, but none has the user base or bring in even half of the developers Ethereum attracts.

You could argue that another general-purpose blockchain will win out in the end, but little evidence supports this theory. The competitor would likely need to start its coup soon. The problems that Ethereum suffers from the most — high fees and slow transactions — will likely evaporate in the next few years after the highly anticipated ETH Merge.

The Merge has been in the works for years. As part of the upgrade, the network will switch to a proof-of-stake PoS consensus mechanism from proof of work. PoS requires validators to stake ETH tokens instead of running expensive hardware that uses absurd amounts of energy.

This change will decrease the energy consumption of Ethereum — estimated to be about as high as the consumption of the entire country of Romania — by After the change, Ethereum will no longer have a significant effect on climate change unlike Bitcoin. The Merge will also eventually implement a complex blockchain technology called sharding that should significantly diminish fees and speed up transactions.

It is currently planned to launch sometime in If the global markets have recovered by then, ETH has a fantastic chance of pumping and maybe reaching all-time highs after the Merge goes live. Market capitalization represents the price of the token multiplied by the number of tokens in circulation. When looking at the potential for price growth, it is important to look at the market capitalization relative to other currencies to determine the true growth potential of a project.

ETH and the many tokens built upon the Ethereum network are currently outpacing the growth rate of BTC, a bullish sign that indicates investors may see the Ethereum network as more important to the future of cryptocurrency than Bitcoin. Its team of financial analysts believe that ETH is more similar to a financial market with more use cases than BTC, which they view as solely a currency.

Ethereum is often considered one of the best long-term investments in the crypto space. It may have more utility than any other cryptocurrency because it gives holders access to all these different platforms. Ethereum has more developers working on the network itself and applications on it than any other blockchain. In , Ethereum had more than three times the developers working on it than the next competitor, Polkadot. Ethereum had about 3, monthly active developers whereas Polkadot barely broke Rising inflation, central bank hiking, and the high likelihood of a global recession are causing stocks and crypto markets to tumble this year.

The fall comes in response to persistently high inflation in the US, and the worrying news that price rises have become embedded in the broader economy. For example, the wage-price spiral is now in effect. High inflation means the Federal Reserve must continue hiking interest rates. This is a contractionary monetary policy that increases the cost of borrowing, reduces demand, and is generally negative for risk assets such as stocks and crypto.

It also increases the risk of recession. The network upgrade proceeded successfully. And, although many observers expected the event to boost ETH prices, it was unable to buck the broader decline in crypto sentiment that has prevailed in recent weeks. Longer term, we think the Fed is not done with an aggressive hiking cycle, and recession risks are increasing.

This means macro is weighing on crypto. The question for , then, is how low could crypto go? Are we at extreme undervaluation levels, or is more meaningful downside possible? The macro backdrop for ethereum is bearish. Overall, we are neutral to bullish on ETH in the short term.

Therefore, if you have a two-to-four-week horizon, now may be a good time to buy ethereum. Given the prospect of yield on staked ETH and a huge drop in energy consumption, the transition to proof-of-stake had positioned itself well for a bullish narrative. The merge had been the source of an impressive rally since ethereum developers first hinted at a tentative timeline back on 14 July at the time, the merge was expected to occur around 19 September.

The chart below shows the latest ETH price. Big investors accumulating ethereum had also bolstered sentiment. The total supply held by addresses with a balance of at least , coins had increased in line with price action ever since that developer call. In a previous ethereum update , we discussed the implications of the merge. The punchline was it would be bullish for these reasons: Validators can earn yield on staked ETH post merge.

Faster transactions. Net issuance is projected to drop considerably post merge, constraining supply. Ethereum may become deflationary. Increased scalability and security. Better for the environment thanks to proof of stake not work. However, ethereum and the broader crypto space have been unable to escape the longer-term bearish macro backdrop. We discuss that next. Macro Reasons for the Current Ethereum Price Long-Term View Crypto markets almost looked like they had partial immunity from the tech sell-off and growing risk aversion.

But recent price action has put paid to that notion. The relative stability of ethereum between mid-January and mid-April, when it choppily trended up with higher highs and higher lows, was simply the calm before the storm. And there is likely more to come. And we expect additional aggressive hikes in November and beyond, following a higher-than-expected US employment report for September.

It implies the economy is still running too hot and that the Fed will act aggressively to tame it. This would negatively impact risk markets, especially the ETH price. Years of low interest rates since the global financial crisis in had seen markets reach extreme valuations by the end of Who cares if tech companies are loss-making if the companies can borrow easily? And if companies cannot borrow money, they can attract capital from investors, who themselves have likely borrowed money.

Crypto markets have not been immune to the support from cheap leverage in the fiat markets. After all, crypto offers the tech dream of scalability and regulatory arbitrage. And if there was any doubt that crypto was not benefiting from low interest rates, the recent declines in crypto as US rates have risen should remove it.

This is a common occurrence throughout history. When the liquidity tap turns off, usually by central banks raising rates, the correlation between diverse assets shoots up. This time appears no different. The bottom line is that the macro backdrop for crypto remains bearish on rate hikes and inflation. It was higher than expected, which prompted further worries in financial markets.

The Fed meets again on 2 November for their next policy decision; they will probably hike another 75bp. The even will be important for risk markets of which crypto is increasingly a part and broader risk sentiment in general. What Else Is Happening in Crypto? Alongside investors, miners are feeling the crypto crunch. As prices drop, they are re-evaluating whether it is still profitable to operate their expensive mining rigs. And soaring energy prices exacerbate this effect as the margins for mining profitability tighten.

Hash rates and miner revenues have come down significantly since the start of June. Regulation also is becoming more of a theme throughout , with various executive orders signed already. Increased regulation should mean less uncertainty around crypto markets for investors, which would be bullish. On the flip side, overregulation could stifle innovation by increasing censorship.

The ongoing regulatory backdrop will be key to monitor. Lastly, on ethereum specifically, there is the much-anticipated merge. We previously covered its potential implications. The punchline was that it should be bullish for ethereum. It has prompted other players to start censoring transactions to avoid similar sanctioning. Large ethereum miners are looking to upgrade their equipment , turning to cloud computing and AI ahead of the merge. Summary of ETH Analysis The bottom line is that crypto, including ethereum, will remain under pressure.

The main near-term support would be Fed dovishness rather than any crypto-specific dynamics. We do not see this happening anytime soon. And for long-term investors, we still think some allocation to crypto makes sense — just like an allocation to equities also makes sense.

But be prepared for weakness in

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Hash rates and miner revenues have come down significantly since the start of June. Regulation also is becoming more of a theme throughout , with various executive orders signed already. Increased regulation should mean less uncertainty around crypto markets for investors, which would be bullish. On the flip side, overregulation could stifle innovation by increasing censorship. The ongoing regulatory backdrop will be key to monitor.

Lastly, on ethereum specifically, there is the much-anticipated merge. We previously covered its potential implications. The punchline was that it should be bullish for ethereum. It has prompted other players to start censoring transactions to avoid similar sanctioning. Large ethereum miners are looking to upgrade their equipment , turning to cloud computing and AI ahead of the merge. Summary of ETH Analysis The bottom line is that crypto, including ethereum, will remain under pressure.

The main near-term support would be Fed dovishness rather than any crypto-specific dynamics. We do not see this happening anytime soon. And for long-term investors, we still think some allocation to crypto makes sense — just like an allocation to equities also makes sense. But be prepared for weakness in For all our latest analysis on crypto markets, click here. With the length of the blockchain continuing to grow and decentralised finance DeFi gaining ground over traditional finance, this new asset class is reshaping the investment landscape.

We think ethereum is a worthwhile long-term investment. However, we also note that ethereum is extremely volatile. That means it experiences large price movements over short periods. Before investing, you must understand the risks involved: you could lose all or a large portion of your investment. Never invest money that you cannot afford to lose. Success stories like these often give people FOMO — or the fear of missing out — if they do not invest immediately.

However, to invest in cryptocurrency, we must first understand it. Crypto tokens are unlike any traditional asset class. And they are all different. Just because you understand bitcoin, does not mean you know how ethereum works.

Our video on bitcoin and ethereum fundamentals can help you understand how ethereum prices fluctuate and how to assess trends in important ethereum metrics. And the video below explains other cryptocurrencies that might put ethereum at risk.

Each currency has different underlying protocols and technology. That impacts how they trade, their volatility, and how you can value them. Some are more like stocks, others commodities, and others currencies. And each crypto token has a unique structure of supply. We think crypto markets are a worthwhile long-term investment. The technology can capture market share on some existing markets like payments and stock trading while creating new markets like valuable scarce digital assets.

Drawdowns provide good entry levels for exposure, but we would not go max long in an environment of rising central bank rates and falling global growth momentum. A crypto exchange is where buyers and sellers meet to exchange money for coins, coins for other coins, and coins for money.

Many options are available such as Coinbase, Binance. You also need access to a crypto wallet to store ethereum and other cryptocurrencies. Many exchanges provide these, but not all do. You can also buy ethereum on platforms like Paypal and Robinhood. One way to cope with the volatility is to use dollar-cost averaging. Dollar-cost averaging is a strategy where you divide the total amount you want to invest across periodic purchases of the target asset. It simply means that you would invest the same number of dollars each month or quarter, regardless of market trends.

The idea is that when prices are high, you can afford less of the asset. But when prices are low, you can afford more. When the market recovers, you benefit from having bought more shares at the lower price. Please note that using this strategy will not always result in a profit or necessarily protect you from falling prices. Diversify Your Crypto Portfolio With the crypto landscape so volatile and diverse, managing risk in a portfolio is critical.

That essentially means position sizing and diversification — as with any other kind of investment. One of the best pieces of investment advice we have heard recently comes from Ari Paul, co-founder and CIO of Blocktower Capital, a crypto and blockchain investment firm. So, if you think bitcoin is too risky, you could size it at 0.

Too risky is never a reason not to own an asset. If something is positive expected value, risk adjusted, and relatively low correlation, you have to own it. That means we expect stable to falling prices. For in general, we think recession risks pose a risk to ETH and so now might not be the best time to buy ethereum if you have a medium-term outlook.

We think ethereum is a good long-term investment for the next one to three years and are bullish overall. Since then, Ethereum has experienced several major bull runs. Since then, ETH price has been volatile and generally gone downwards. As with all investments, the value of ethereum can rise as well as fall. We recommend small allocations and diversification of your portfolio. Never invest what you cannot afford to lose.

Traditional wisdom says you should buy low and sell high. But whether you should sell ethereum depends on your investment horizon, risk appetite and financial goals. Although some website speculate that certain days of the week are better or worse then others for selling ethereum, we believe that any decision to buy or sell should be based on analysis of crypto fundamentals.

Appendix Ethereum as a Good Inflation Hedge Ethereum and bitcoin have historically been touted as a hedge for inflation. When inflation expectations rise, you would want the relationship between the cryptocurrency and inflation expectations to be at least positive.

This, historically, has held. If the price of Ether continues growing in the same way it is now, it will attract more investors Best Day of the Week to Buy Ethereum Unfortunately, nobody can tell you that e. Monday is better than Wednesday or any other day.

Because there are multiple factors that may change the price of the digital coin any day of the week. In order to determine whether or not it is a good time to invest in a cryptocurrency, and in ETC in particular, one should keep an eye on the following: Learn the blockchain technology The decentralized and transparent nature is what makes blockchain highly secure and almost impossible to hack, because a hack to one ledger would cause a discrepancy in the entire network that will be ignored.

For a currency like Ether, this would mean millions of computers. So the larger the network, the more stable the currency. Understand the risks Cryptocurrency is still a young technology, and faces many challenges. The prices of digital coins are highly impacted by public sentiment about the currency. It will continue to fluctuate as companies and financial institutions make decisions of how to incorporate or not incorporate it into their businesses and workflow.

There is also risk inherent to the exchange itself. Just like the cash in your wallet, the safety of your crypto coins depend on your own diligence. It means you should only do business with people and organizations you know and trust, or who have an established reputation. Read the news Bookmark popular crypto websites and check the news regularly.

Coinbase Create your account on Coinbase exchange to monitor all the regulatory requirements changes in the countries they operate. They also have two distinctly separate but integrated products: Coinbase for buying and selling coins or sending them to friends, and Global Digital Asset Exchange GDAX for more advanced and precise trading. Technical analysis If you study markets technical analysis, you can predict the moves and plan in advance setting up your trades ahead of time with stop limits and buy orders at particular price points.

Best Time of the Day to Buy Ethereum Some experts believe that a good time to buy Ether is when the Korean markets are trading heavily, generally on their open and close of their business hours. Others think that traditional market hours in the US are also good to watch, as there can be high volume in the mornings in the US on news that happened overnight.

Crypto markets run 24 hours a day, so pick a time frame that works best for you, and track it during that time daily.

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This is due to its increasing popularity and innovative technology. It gives the following three factors as the reason for this prediction: Considering the future supply of Ether, developers may want to ensure that the number of coins remains constant.

It may increase now but will stabilize after a while. The increasing demand and use of Ethereum smart contracts. The need for decentralized systems is growing on a daily basis. Investing Haven predicts that 5 — 7 years from now there will be a 20 — fold increase in the smart contract apps being used. If the price of Ether continues growing in the same way it is now, it will attract more investors Best Day of the Week to Buy Ethereum Unfortunately, nobody can tell you that e.

Monday is better than Wednesday or any other day. Because there are multiple factors that may change the price of the digital coin any day of the week. In order to determine whether or not it is a good time to invest in a cryptocurrency, and in ETC in particular, one should keep an eye on the following: Learn the blockchain technology The decentralized and transparent nature is what makes blockchain highly secure and almost impossible to hack, because a hack to one ledger would cause a discrepancy in the entire network that will be ignored.

For a currency like Ether, this would mean millions of computers. So the larger the network, the more stable the currency. Understand the risks Cryptocurrency is still a young technology, and faces many challenges. The prices of digital coins are highly impacted by public sentiment about the currency. It will continue to fluctuate as companies and financial institutions make decisions of how to incorporate or not incorporate it into their businesses and workflow.

There is also risk inherent to the exchange itself. Just like the cash in your wallet, the safety of your crypto coins depend on your own diligence. It means you should only do business with people and organizations you know and trust, or who have an established reputation. Read the news Bookmark popular crypto websites and check the news regularly. The total supply held by addresses with a balance of at least , coins had increased in line with price action ever since that developer call.

In a previous ethereum update , we discussed the implications of the merge. The punchline was it would be bullish for these reasons: Validators can earn yield on staked ETH post merge. Faster transactions. Net issuance is projected to drop considerably post merge, constraining supply.

Ethereum may become deflationary. Increased scalability and security. Better for the environment thanks to proof of stake not work. However, ethereum and the broader crypto space have been unable to escape the longer-term bearish macro backdrop. We discuss that next. Macro Reasons for the Current Ethereum Price Long-Term View Crypto markets almost looked like they had partial immunity from the tech sell-off and growing risk aversion. But recent price action has put paid to that notion.

The relative stability of ethereum between mid-January and mid-April, when it choppily trended up with higher highs and higher lows, was simply the calm before the storm. And there is likely more to come. And we expect additional aggressive hikes in November and beyond, following a higher-than-expected US employment report for September. It implies the economy is still running too hot and that the Fed will act aggressively to tame it.

This would negatively impact risk markets, especially the ETH price. Years of low interest rates since the global financial crisis in had seen markets reach extreme valuations by the end of Who cares if tech companies are loss-making if the companies can borrow easily? And if companies cannot borrow money, they can attract capital from investors, who themselves have likely borrowed money. Crypto markets have not been immune to the support from cheap leverage in the fiat markets.

After all, crypto offers the tech dream of scalability and regulatory arbitrage. And if there was any doubt that crypto was not benefiting from low interest rates, the recent declines in crypto as US rates have risen should remove it. This is a common occurrence throughout history.

When the liquidity tap turns off, usually by central banks raising rates, the correlation between diverse assets shoots up. This time appears no different. The bottom line is that the macro backdrop for crypto remains bearish on rate hikes and inflation. It was higher than expected, which prompted further worries in financial markets.

The Fed meets again on 2 November for their next policy decision; they will probably hike another 75bp. The even will be important for risk markets of which crypto is increasingly a part and broader risk sentiment in general. What Else Is Happening in Crypto? Alongside investors, miners are feeling the crypto crunch.

As prices drop, they are re-evaluating whether it is still profitable to operate their expensive mining rigs. And soaring energy prices exacerbate this effect as the margins for mining profitability tighten. Hash rates and miner revenues have come down significantly since the start of June. Regulation also is becoming more of a theme throughout , with various executive orders signed already.

Increased regulation should mean less uncertainty around crypto markets for investors, which would be bullish. On the flip side, overregulation could stifle innovation by increasing censorship. The ongoing regulatory backdrop will be key to monitor. Lastly, on ethereum specifically, there is the much-anticipated merge.

We previously covered its potential implications. The punchline was that it should be bullish for ethereum. It has prompted other players to start censoring transactions to avoid similar sanctioning. Large ethereum miners are looking to upgrade their equipment , turning to cloud computing and AI ahead of the merge. Summary of ETH Analysis The bottom line is that crypto, including ethereum, will remain under pressure.

The main near-term support would be Fed dovishness rather than any crypto-specific dynamics. We do not see this happening anytime soon. And for long-term investors, we still think some allocation to crypto makes sense — just like an allocation to equities also makes sense.

But be prepared for weakness in For all our latest analysis on crypto markets, click here. With the length of the blockchain continuing to grow and decentralised finance DeFi gaining ground over traditional finance, this new asset class is reshaping the investment landscape. We think ethereum is a worthwhile long-term investment.

However, we also note that ethereum is extremely volatile. That means it experiences large price movements over short periods. Before investing, you must understand the risks involved: you could lose all or a large portion of your investment. Never invest money that you cannot afford to lose. Success stories like these often give people FOMO — or the fear of missing out — if they do not invest immediately. However, to invest in cryptocurrency, we must first understand it.

Crypto tokens are unlike any traditional asset class. And they are all different. Just because you understand bitcoin, does not mean you know how ethereum works. Our video on bitcoin and ethereum fundamentals can help you understand how ethereum prices fluctuate and how to assess trends in important ethereum metrics. And the video below explains other cryptocurrencies that might put ethereum at risk.

Each currency has different underlying protocols and technology. That impacts how they trade, their volatility, and how you can value them. Some are more like stocks, others commodities, and others currencies. And each crypto token has a unique structure of supply. We think crypto markets are a worthwhile long-term investment.