For so many years, many close guards in the crypto industry have waited impatiently for prices to crash so they could buy. After all, in 2021 crypto was just plain hot. Coins have reached record highs and Ethereum is expected to hit $10,000 this year. But things didn’t really turn out that way. Here are some facts:
ETH fell below $1000 for the first time in months.
However, the coin managed to regain the four-digit price.
An upward trend reversal is not likely at this time.
Data Source: TradingView
Ethereum: Where will it go?
Now, when ETH fell below $1000, most analysts saw a deeper drop. But the crypto market just surprised us. Prices rallied and ETH was above $1000 again. This may seem like a good sign. But this is not the case. The major economic and financial risks that have put such pressure on the crypto have not yet abated.
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 run. So even though ETH is now above $1000, the coin is still exposed to further declines.
We actually think another major selloff is coming in crypto. This will likely be the final blow that finally sends ETH and most coins firmly into the bear market. As such, now may not be the ideal time to buy.
When to buy Ethereum?
There are two levels of support for ETH after $1000. The most immediate is around the $800 mark and the second around $550. ETH will likely be bottom at either of these two.
The best strategy would be to use the average of the dollar cost and buy the moment ETH hits $800. Keep buying even if it drops towards $500. After that, give it a few months and wait.