For so many years, many fence-sitters in the crypto industry have waited for the price to crash in order to buy. After all, crypto was just hot in 2021. The coins hit record-breaking highs, and Ethereum was predicted to reach $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 gain a four-digit price tag.
A reversal of the upward trend is not likely at the moment.
Data Source: TradingView
Ethereum: Where Will It Go?
Now, when ETH fell below $1000, most analysts see further downside. But the crypto market surprised us. The price corrected, and ETH was once again above $1000. This may sound like a good sign. But in reality it is not so. The economic and financial risks that have put so much pressure on cryptocurrencies are yet to subside.
Yes, efforts are on to tackle inflation and reduce its impact on the economy. But the success of these efforts will be in the long run. So, even though ETH is now above $1000, the coin is still on a further downside.
We actually think another big selloff in crypto is coming. This could be the last blow that eventually sends ETH and most coins firmly into a bear market. As such, it may not be the most ideal time for shopping.
When to buy Ethereum?
There are two support levels for ETH after $1000. The most immediate one is about $800, and the other is about $550. ETH is likely to be below either of these.
The best strategy would be to use dollar-cost averaging and buy the moment ETH reaches $800. Continue buying even if it drops to $500. After that, give it a few months and just wait.