Ethereum’s price has been on shaky grounds ever since the long-awaited “merge” was completed on Sept. 15. The token’s price has steadily declined since then — struggling to stay above $1,300 — though it’s seeing a sharp price increase along with bitcoin Friday morning.
Both ethereum and bitcoin have been relatively stable over the last couple of weeks, while other assets tumble, including stocks and gold. Crypto’s recent stability could be do in part to the resiliency of long-term holders, but whether that resiliency is here to stay remains to be seen. It’ll be a stacked end of the year; additional volatility to ethereum’s prices could be introduced via inflation reports through the end of the year, Federal Reserve meetings and the midterm elections.
Indeed, that’s what experts say has increased volatility up until now: continued surging inflation, shifting U.S. monetary policy, and the continuing war in Ukraine. Experts also point to other factors that’ve been contributing to prices, like the crypto market tracking the stock market, more mainstream adoption, and slumping prices in recent months as contributing to what we’re seeing with crypto prices right now. Government officials have also continued to show an interest in more crypto regulation and even the possibility of creating a government-issued digital currency. Bitcoin’s price has had a similarly rough stretch lately.
All this has made for a shaky first half of the year for ethereum. Here’s how ethereum’s current price compares to its daily high point over the past few months:
|One Week Ago (September 26)||One Month Ago (September 3)||3 Months Ago (July 5)|
After topping $4,100 on Dec. 27, ethereum has steadily trended downwards, albeit with rallies here and there, ranging between $900 and $3,800 throughout the year. Many experts are still bullish, despite the recent slump, predicting ethereum’s price could potentially hit and exceed $12,000 this year.
Ethereum still had a relatively strong close to 2021. ethereum set a new all-time high when it went over $4,850 on Nov. 10, and it carried that strength into December before falling back by the end of the month. Even with the late slump, Ethereum closed the year way over where it was at the start: In January 2021, ethereum’s price was just a little over $1,000.
Like ethereum, bitcoin has stalled over the past month as well The token set a new all-time high when it went over $68,000 on Nov. 10. The future of cryptocurrency is sure to include plenty more volatility in the price of bitcoin and ethereum, and experts’ advice for investors remains the same.
What Should Ethereum Investors Do?
As with any long-term investment, experts advise to ignore the ups and downs. The latest high price doesn’t mean ethereum’s volatility has gone away.
“The real question is, owning these coins, are they going to continue to experience compound, exponential growth? Nothing in the fundamentals of cryptocurrency tells me that answer is yes,” says Jeremy Schnieder, the investing expert behind Personal Finance Club.
Because there’s no guarantee that any crypto’s value will increase, experts advise to never invest more than 5% of your portfolio in cryptocurrency. Never invest at the risk of not meeting other financial goals like paying off high-interest debt or saving for retirement.
If you’ve met all of those benchmarks, the best thing you can do is ignore the hype around new record highs or lows. Like with traditional, long-term investing, the best thing you can do is “set it and forget it,” Humphrey Yang, the personal finance expert behind Humphrey Talks, previously told NextAdvisor.
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Former NextAdvisor reporter Ryan Haar contributed.