Ethereum price rose again above $3,200 on Tuesday, after steadily rallying after a brief dip between $3,000 on Monday morning.
The price of Ethereum was around $3,800 until last Wednesday, when it launched a streak that lasted through the weekend and into Monday. This week marked the first time that Ethereum had fallen below $3,000 since late September 2021.
These recent big drops in Ethereum and Bitcoin came on the heels of last week’s disappointing December jobs report, as well as the release of the minutes of the Federal Reserve’s December meeting, which indicated that the central bank would begin to slow down actions to support the economy as it continues. to improve.
After hitting $4,100 on December 27, Ethereum ranged between $2,900 and $4,000 in the days that followed. It was between $3,000 and $3,900 last week.
Despite the recent slump, Ethereum is still relatively close to 2021. Ethereum set an all-time high when it crossed $4,850 on November 10, and that strength continued into December before easing back by the end of the month. Even with the late recession, Ethereum closed out the new year where it had initially been: in January 2021, the price of Ethereum was just over $1,000.
The volatility and lower prices come as the US deals with new economic uncertainty over the Omicron COVID-19 variable, new comments by Federal Reserve Chairman Jerome Powell about the health of the economy, and ongoing comments by US policy makers such as SEC President Gary Gensler about regulation Cryptocurrency.
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Like Ethereum, Bitcoin has stalled over the past month as well after a strong November; Bitcoin hit a new all-time high when it crossed $68,000 on November 10. The future of the cryptocurrency is sure to include a lot of fluctuations in the price of Bitcoin and Ethereum, and expert 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 price hike does not mean that Ethereum’s volatility has faded.
“The real question is, owning these coins, will they continue to experience exponential and compound growth? Nothing in crypto fundamentals tells me the answer is yes,” says Jeremy Schneider, the investment expert behind Personal Finance Club.
Since there is no guarantee that any cryptocurrency will increase in value, experts advise not to invest more than 5% of your portfolio in cryptocurrencies. Never invest in the risk of not meeting other financial goals such as paying down high-interest debt or saving for retirement.
If you’ve met all of these criteria, the best thing you can do is ignore the hype about new record highs or lows. As with traditional long-term investing, the best thing you can do is “set it and forget it,” Humphrey Yang, the personal financial expert behind Humphrey Talks, previously told NextAdvisor.