The second cryptocurrency with the largest market capitalization registered the highest price in its history. Is it late to enter or is it still on time?
Bitcoin (BTC) reached its all-time high – it surpassed the at $ s66,000 per unit- and this Friday Ethereum (ETH), the second cryptomoney with higher market capitalization, did not want to be less and it also broke its own mark and traded above $ 4,440.
In this way, ETH reached a new All-Time High (ATH), that is, its highest price in its history, a figure that filled with joy to the experts who predicted an event of this magnitude.
And just as BTC lost about 50% of its value in the middle of the year, Ethereum also experienced moments of distress, as happened on June 22 when it fell to US $ 1,701 per unit, its lowest figure since May’s record, when it touched $ 4,379 per unit.
But the price of the token managed to recover and weeks like the one that just closed provoke optimism to those who bet on her, while in parallel it awakens the desire to buy to many who have the possibility to do so.
Despite the record, is it a good time to enter?
It is very difficult to predict exactly what will happen in the world of cryptocurrencies, whose prices are marked by the volatility and for that reason are recommended for users who have tolerance to risk.
But many are searching similarities in the situation that Bitcoin went through after its ATH to determine your next steps.
“It is that the appreciation that we are seeing of ETH is very similar to that of BTC. That is, the strong issuance that the United States is making, together with investors who are looking for new alternatives, generate a high demand that causes this increase”, explain to iProUP Federico Goldberg, co-founder of the exchange Dollar Store.
In addition, the specialist adds that this increase is pushed by users who are doing “asset turnover”, that is, those who are changing BTC, BNB O stablecoins for ETH seeing it as a crypto with a lot of potential.
About Alvaro Gandia, cryptocurrency expert and creator of the CriptoTips community, adds to iProUP that ETH found daily support at $ 4,000 and “as long as this break continues in the coming weeks, the candles are likely green, going to look for the u$s5.0000 yu$s7.000 if he funding (open interest in leveraged players) doesn’t skyrocket. “
This was the behavior of ETH
That emotion does not lead you to make mistakes
ETH, like variable-price cryptocurrencies, is a volatile asset. Therefore it can continue to rise in value, but it may also fall.
“In the long run, there is a great consensus that cryptocurrencies are here to stay. And Ethereum is one of the main and is recognized among those that allow the ecosystem to continue to grow. This is why, looking at the long term, everyone is going up, but in the short is a roller coaster and it can go up or down suddenly, “says Goldberg.
For this reason, the specialist advises defining previously how many pesos do you want to invest and “split them in 5 o 10 intervals to average and avoid losing a lot to a steep descent “.
The strengths of the network behind the token
“Like the famous contracts smart. That is where the strength lies to start investing in Ethereum as decentralized computer or tokens that they give you access to it, as are the protocols that were set up there “, remarks the expert.
It also highlights the advantage of “utility” whether those tokens can be placed in decentralized contracts to receive monthly interest.
“This with Bitcoins exists, but more at a centralized level,” emphasizes Beaudroit.
In addition, the Belo specialist openly states that this type of election should be thought of as an alternative to the US currency: “Although the dollar is the unit of international exchange and reference for trade, it is a monetary system that is in decline.”
“That is why the preponderance of asset systems decentralizedLike Ethereum, it is the future and it is a smart decision to take steps in that direction, “he predicts.
About, Matias Bari, CEO of SatoshiTango, add to iProUP that although the Ether network is not designed for its token to be a store of value – but rather to become the fuel for smart contracts – it is an attractive investment in the short and medium term.
“Clarifying the time horizon is important because eventually the community may determine that ETH issuance should increase for technical or other reasons, and there is no one who can object because this network it was not conceived as a store of value“, he warns.
Keys to understanding how ETH works
How does the London upgrade drive your price?
At the beginning of August one of the most anticipated updates of the Ethereum network was implemented (London) and immediately its effects began to be felt, since, with the new mechanism of transaction fees introduced, Ethereum burns 2.3 ETH every minute.
And after its entry into force, the network’s native cryptocurrency, ETH, which started August at an average of US $ 2,450 per unit, closed the month at US $ 3,400 per unit and almost 90 days of that key date exceeded u $ s4,440.
What this update did is further limit the supply of Ether units by slowing down their creation. Given this fork, multiple market analysts anticipated this would lead to a major rally in cryptocurrency values.
And they were not wrong.