Ethereum’s price dropped to below $3,700 Saturday morning, extending a sudden and decisive drop that started Friday afternoon.
The big drop comes after Ethereum had a strong week, nearly hitting $4,800 — close to its current all-time high — on Wednesday.
This week’s ups and downs come after multiple brief drops below $4,000 in recent days — the lowest Ethereum’s price had gone since early October. Ethereum set a new all-time high on Nov. 10 when its price went over $4,850.
Bitcoin and Ethereum had both been at or near their all-time highs before this recent volatility, with Bitcoin setting a new all-time high over $68,000 in November as well. Bitcoin also saw a big drop Saturday morning, falling below $50,000. The falling prices come after new comments last week from SEC Chairman Gary Gensler about cryptocurrency regulation, concern over the new omicron variant of the coronavirus, and the $1.2 trillion infrastructure bill President Joe Biden signed last month that contains several crypto tax reporting provisions.
[READ MORE:] Ethereum: What You Should Know Before You Invest
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.
- Bitcoin or Ethereum: What New Crypto Investors Should Know About Both Before They Buy
- Does Crypto Belong In Your Investment Portfolio? These 4 Questions Can Help You Decide
- How Much to Invest in Cryptocurrency, According to 5 Experts
- Cryptocurrency Has Seen a Surge of Interest This Year. We Answered People’s Most-Googled Questions
- How to Buy Bitcoin: A Guide for New Crypto Investors
- Curious About Crypto? What 10 Financial Advisors Are Telling Clients About Investing in It
- What is Bitcoin – The First Cryptocurrency
- The 10 Most Popular Cryptocurrencies, and What You Should Know About Each Before You Invest
- The Future of Cryptocurrency: 5 Experts’ Predictions After a “Breakthrough” 2021
- How Investors Can Get In On Crypto Without Actually Buying Any