Ethereum returns above $1000 – Should you buy
For so many years, many fence-sitters in the crypto industry have waited in bated breath for the prices to crash so that they can buy in. After all, in 2021 crypto was just hot. Coins hit record-breaking highs, and Ethereum was predicted to hit $10,000 this year. But things haven’t really turned out that way. Here are some facts:
ETH fell below $1000 for the first time in months.
However, the coin has managed to regain the four-digit price.
An upward trend reversal is not likely at the moment.
Data Source: TradingView
Ethereum: Where will it go?
Now, when ETH fell below $1000, most analysts saw a deeper fall. But the crypto market just surprised us. Prices recovered, and ETH was once again above $1000. This may seem like a good sign. But it’s actually not. The driving economic and financial risks that have put so much pressure on crypto have not yet eased.
Yes, there are growing efforts to deal with inflation and reduce its impact on the economy. But the success of these efforts will come in the long term. So, even though ETH is now above $1000, the coin is still exposed to further downside.
We in fact think that another major sell-off is coming in crypto. This will likely be the last blow that finally sends ETH and most coins firmly into the bear market. As such, it may not be the most ideal time to buy.
When to buy Ethereum?
There are two support levels for ETH after $1000. The most immediate one is around the $800 mark, and the second one is at about $550. ETH will likely bottom at either of these two.
The best strategy would be to use dollar-cost averaging and buy the moment ETH hits $800. Continue buying even if it dips towards $500. After that, give it a few months and just wait.