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The global stock markets have had a difficult time of late. There are a number of persistent and serious issues plaguing investor confidence. Lately it has been the central bank’s attack on economic growth, all in the name of controlling inflation. Crypto was not immune to this downward pressure. Today we argue that like all other fixes before it, this is an opportunity. Investors should at least consider exploring the opportunities in currencies such as ether (ETH USD). After all, its basic thesis is easy to argue since it dominates the transaction network.
Ethereum has competition, but for now there is no doubt about the reasons to own it. When crypto traders make transactions, they will likely need some ETH to pay for gas and fees. For those who are skeptical about the future of cryptocurrencies, you have to keep in mind that all things in this world are going digital, so there will be money too. And when that happens, current crypto technology will come into play on a much larger scale.
| ticker | currency | current price |
| ETH USD | ether | $1,804.08 |
This is not the first Ethereum correction
The returns of investing in Ethereum are beyond doubt. Despite this, it is publicly dismissed by famous investors such as Warren Buffett and Charlie Munger. If you bought the March 2020 dip, you earned 5,300%. Even now, it’s still 1,900% above that level. Those who bought the Christmas 2018 crash gained 375% immediately.
Evidently, despite what all skeptics say, ETH-USD can make profits. So, instead of arguing about its long-term profitability, let’s think about trading this proven winner today. I don’t have to love the assets I trade, but I wouldn’t mind profiting from them. Art dealers don’t have to like the pieces they sell. But that doesn’t stop them from trading them.
For a discussion of levels I refer to Bitcoins (BTC USD) prices because it is the most famous. All other leading cryptos, including Ethereum, follow it with slight swings in amplitude. The correction for BTC started late last year. Then, when it lost $46,000, it triggered a bearish pattern that is still ongoing. The target should be in the low $20,000 or high $18,000 range.
These projections may spook investors, but technically they make sense. The important part is that this makes the dip a potentially fruitful opportunity.
Own Ethereum on dips and for the long term
Source: TradingView charts
The decision to own ETH has two reasons, each of which is enough to convince me to buy it now. The first is that I know I need something to pay for my transactions. The second is to trade the action purely and accumulate some over the long term. My goal is to always have crypto, so I accumulate a core position. I mainly use the top 5, with a few wild card bets on the metaverse.
I know I’m not going to nail down the perfect entry point, but buying a little bit over time makes sense. The total base price will be enough to benefit from these transactions. Investors, and especially skeptics, should break their blocks on crypto. Electronic money going mainstream; It’s only a matter of time. Fortunately, it is now easy and costs very little to learn about it.
Most crypto platforms allow tiny amounts of investment. The risk is literally a fraction of what most of us use when trading mainstream stocks. And that low risk has the potential for the highest rewards ever recorded. I caution against going all-in as Ethereum can still fall from here. The downside target can be significant, making timing an all-in entry impossible. I find it best to start with a small entry and then add to it over time.
On the day of publication, Nicolas Chahine held Ethereum. The opinions expressed in this article are those of the author and are subject to InvestorPlace.com’s publicity guidelines.
Nicolas Chahine is the Managing Director of SellSpreads.com.
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