As of today (April 24, 2018), Ethereum (ETH) is still the second in the top list of cryptocurrencies by market capitalization following Bitcoin (BTC). So it is closely watched by investors, various fintech and blockchain startups, cryptocurrency enthusiasts and common public.
The Ethereum price charts have been featuring a bearish trend since the all-time high of $1,430 was hit on January 13, 2018. Now, in the mid of April, the price started to align after more than two months of dropping. But let’s get back to the title and try to answer a lingering question: “Is Ethereum worth buying?”
To better analyze the current market situation and come to the right investment decision about Ether, it is important to consider its role in the modern digital environment.
What makes Ethereum unique?
The Ether token is a digital product designed especially for smart contracts that are used within a decentralized Ethereum platform. Ethereum also provides a framework for developers to create decentralized apps, where the payment is done in Ether.
The range of Ether applications is huge from powering apps inside the Ethereum blockchain and monetizing business processes to trading in cryptocurrency exchanges.This makes the digital token versatile and popular especially among ICOs, fundraising activities undertaken by startups inside the Ethereum ecosystem.
Many invest in Ethereum due to its tech and adaptability. The role of Ether as the major rival to Bitcoin in the digital currency space has also been enhanced. Thus, any media hype around Ether is common and understandable.
How to forecast the price of Ethereum?
Chase for news
The digital currency value, as we know, greatly depends on the information of all kinds. A spray of positive forecast awakes the bull to hike up the price, while shattered profit expectations and fear to lose are pushing many investors to hedge and thus make the market dip.
Some of the news that rocked the crypto community and has still been under hot discussion came from the Ethereum blockchain evangelist, Vitalik Buterin, on April 1. He proposes to limit the Ether market supply after 120 million coins will be issued.
This very figure, as for him, will be twice the number of the cryptocurrency sold during the Ethereum fundraising campaign in 2014. This news aimed to clarify investors’ doubts about the Ethereum potential as an investment asset, though caused many controversial talks altogether.
All this certainly influences the current market price of the cryptocurrency, making the situation even more unpredictable.
What do the experts say?
Two major attitudes prevail within the global crypto community now: fear and doubt about the future of Ether, on the one hand; and excitement about a cheap investment opportunity to benefit from, on the other.
Is the recent Ethereum price drop just a sign of market correction or ‘one way to hell’ for the popular coin?
Crypto experts say it can be just a market correction. The mechanism of the correction works as follows. The price of the coin increased too much in the mid of January due to a great public hype over cryptos and ICOs.
That moment many new investors, who are completely inexperienced with digital currencies, bought Ether without any further understanding what to do with it. Their idea was like this: if the currency had made more than 1000% of growth already, it would, definitely, double or even triple in price very shortly after they invested in it.
However, as soon as so many people bought the coin and held it waiting for a lucrative moment, the market, on the whole, began to drop. This tendency brought a wave of panic and, consequently, many short-term investors decided to get back their money provoking price correction and the Ethereum price dip.
Fear that Ether won’t survive the recent crisis lowered the price to minimum on April 6. The following ten days the crypto started to go up in its value again, but still, the market price was set around at $695.72 on 24 April 2018.
There are always investors who take advantage from bearish price movements buying cryptos low and selling high. Such a market strategy proves successful if investors know what they do, keep abreast of the market tendencies, and believe in the Ethereum blockchain tech development.
Forecast for the future of Ethereum
Some predict the further growth of the Ethereum market value in the long-term perspective if the current price keeps higher than $700.
Now Ethereum can be purchased for $695.72. Others believe the price of the digital currency can rise up to $ 2,500 till the end of 2018. Thus, Ethereum can certainly be considered as a right investment option in the short-term and mid-term perspective.
Where to buy Ethereum?
The best places to buy Ethereum with fiat money or Bitcoin are cryptocurrency exchanges. According to Cryptocompare the biggest markets to buy Ethereum with US Dollars are Bitfinex and Coinbase; with Bitcoin – Binance and OKEX.
Many other exchanges are also ready to sell you Ethereum for less popular fiat currencies.
According to the review of CEX exchange, you can buy Ethereum with British Pounds at their platform. And Kraken offers Ethereum for Japanese Yen.
Finally, to make a long story short, Ethereum is still here because it is backed by the most disruptive blockchain which has been constantly developing and improving. The boost of Ethereum’s price from $10 in January 2017 to more than $1,000 in January 2018 proves a good investment potential for the digital currency.
Still no one can make 100% accurate predictions in the volatile cryptocurrency environment, so it always makes sense to risk only the amount of money you won’t regret losing.