Ethereum's price is rising, although it is still below $3,000 at the time of writing. That Has Implications for Investing

This week, Ethereum's price rose above $2,800 for many periods of time, bringing it closer to the $3,000 mark.

It wasn't until March 1 that Ethereum broke beyond the $3,000 threshold, marking the first time it had done so since February 17.

On the heels of President Joe Biden's executive order on cryptocurrencies last week, Ethereum's price surged by 6% to about $2,800, but it swiftly retreated. First measures toward regulation have been taken by President Obama's administration, and they come as the conflict in Ukraine has increasingly focused attention on cryptocurrencies as a critical issue. The bitcoin and stock markets are still seeing increased volatility as a result of the conflict.

In recent weeks, the price of Ethereum has fluctuated between $2,400 and $2,800 following the Russian President Vladimir Putin's decision to send Russian soldiers into Ukraine on February 23. Since then, it's gone up and down, but recently, it's been steadily rising. In the same way, Bitcoin has followed the same path.

Experts believe that the volatile nature of the crypto market is a direct result of conflict. Aside from the stock market watching crypto pricing, mainstream acceptance and recent declines in crypto prices are also being cited as contributing causes to this current volatility in crypto prices.

There was already a lot of volatility in Ethereum before the Ukraine conflict, as the stock market had its worst month since March 2020, and the Federal Reserve said it will begin hiking interest rates at its next meeting in March to combat rising inflation. More crypto regulation and even the potential of launching a government-issued digital currency have also been on the minds of government authorities. Recently, Bitcoin's value has been on the decline.

As a result of all of this, Ethereum's price sank below $2,200 in January—the lowest it has been since July 2021. The price of Ethereum has been fluctuating between $2,500 and $2,900 this week alone. Over the past three months, here's how its current price compares to its highest daily high point

ONE WEEK AGO (MARCH 11) ONE MONTH AGO (FEB. 18) 3 MONTHS AGO (DEC. 18)
$2,662 $2,937 $4,019

Ethereum's price has fluctuated between $2,100 and $4,000 since it reached a high of $4,100 on December 27. Some analysts are still positive despite the sluggish start to 2022 and believe Ethereum's price might rise to and over $12,000 this year.

Despite the recent dip, Ethereum ended the year on a high note. On Nov. 10, Ethereum established a new all-time high when it crossed $4,850, and it maintained that momentum into December until easing off at the end of the month. In January 2021, Ethereum's price was just a little over $1,000. Despite the late fall, Ethereum completed the year much above where it was at the beginning:

In the same way that Ethereum has plateaued following a great November, Bitcoin has also stagnated over the previous month. Bitcoin reached a new all-time high on November 10 when it soared over $68,000. The price of Bitcoin and Ethereum is likely to fluctuate much more in the future, and investors should follow the recommendations of industry professionals.

Investing in Ethereum: What Should a Person Do?

Experts recommend ignoring the ups and downs of any long-term investment. Ethereum's recent price surge does not signal a reduction in the currency's turbulence.

Are these coins going to continue to rise at an exponential rate if you possess them? That is the actual question." Jeremy Schnieder, the investment guru at Personal Finance Club, claims that "nothing in the fundamentals of cryptocurrencies tells me that answer is yes."

Experts advise against investing more than 5% of your whole portfolio in cryptocurrencies since there is no way to predict whether or not their value will rise. Don't invest at the risk of not accomplishing your other financial goals, such as paying off high-interest debt or preparing for your future retirement.

Achieving these milestones means that you should overlook any new record highs or lows that may come your way. Humphrey Yang, the personal finance guru at Humphrey Talks, recently told NextAdvisor that the best thing you can do is "set it and forget it."

** Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of USA GAG nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

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