Is It Too Late to Buy Ethereum?

The world’s second-ranking cryptocurrency has been in the spotlight. As the token has started to gain relative stability, compared to its past few weeks of fluctuations, investors were wondering whether it is still a good time to invest in Ethereum.

Ethereum’s upward trajectory since the start of 2023

The crypto winter of 2022 was hard on many cryptocurrencies, including Ethereum. However, the token picked up its pace and followed an uphill trajectory since the beginning of this year. In the last 4 months, its price fell momentarily to the $1506 level and $1399 level during the second week of February and March respectively. But those pullbacks could not hold the token’s upward trend.

The token was doing remarkably at the beginning of the second quarter of 2023 until the 19th of April. The highest recorded trading price of the token during this time was $2120, while the lowest was $1711. The token witnessed a sharp drop for a few days towards the end of April when the price of the token fluctuated between $1810 to $1840.

The price of Ethereum seems to be at a crossroads right now and is currently trading at $1850. This essentially means that the price can either significantly move up or move down in the next few weeks. Let us look at its market indicators to get an idea of where the price may be heading next.

Ethereum’s Current Market Status

Ethereum’s live price today is at $1850, at the time of writing this article. In the last 24 hours, the token’s price has dropped nearly 2.9%. Its 24-hours trading volume stands at $8.3 billion. The token is the 2nd most popular cryptocurrency with a market capitalization of around $222.7 billion. The token’s circulating supply is 120 million ETH, while the information on its maximum supply limit is not known.

A closer look at Ethereum’s last 24-hour price graph discloses a lot of red points. This means that the token’s price has dropped at many points during the last day of trading. At the beginning of the 24-hour, the ETH price was around $1903. The 24-hour lowest price was recorded at the $1833 level. On the contrary, the 24-hour highest was recorded at $1935. There is a difference of over $1000 in these two values.

Is it Too Late to Buy Ethereum?

Currently, Ethereum’s price has formed a plateau within the range of $1840 to $1860. In the last 24 hours, the token’s price first fell to around the $1880 level, and then a while later, it dropped towards the $1865 level, and then to the $1840 level. This indicates a lower low decrease in its price.

A lower low usually indicates that investors are selling off their shares because the price has been decreasing at a gradual rate. This in return causes the price to drop a bit more, before gaining stability.

A closer look at Ethereum’s 24-hour price graph offers a more clear view of the fall in its price up until earlier today. However, the price is moving on to a semi-linear trajectory now. This means that once the token’s price hit the support level, investors will again rush in to buy, which will drive its price up again.

Macro Economic Conditions Favouring Ethereum

Financial analysts and crypto enthusiasts have been optimistic about Ethereum’s upward growth in the coming weeks. This is because two important macroeconomic conditions are set to work in favour of cryptocurrencies like Bitcoin and Ethereum.

The issues and challenges arising from the banking crisis have started to slow down a bit now, which will improve the financial condition and increase the demand for popular cryptocurrencies. In addition to this, US Federal’s tight grip on the nation’s monetary policy also seems to be coming to an end soon. This will lower the price of the US dollar, which will increase the value of cryptocurrency as an alternative to legal tender money.

In addition to these, there is one more factor that is set to drive up Ethereum’s price. It is an increase in the rate of supply deflation. The rapid rise in the network fees for Ethereum has caused the supply deflation rate to increase. This in turn makes the token dearer and as a result, its price will drive up in the long run.

Final Words

There is much speculation regarding the performance of the token in May. The token is forming support at the $1890 level which means that it is less likely that the price will fall beyond this point. This means this is the lowest the token will trade at before moving toward again. On the other hand, the token is forming resistance at the $1880 and $1890 levels which means it is highly likely for the token to pick up from the current $1850 and reach the $1890.

The bearish sentiment moving heavily over the Ethereum market seems to be losing its grip now, as the coin has gained a little stability. This could mean that there is no more incentive to sell, as the price of the token is less likely to fall again. On the contrary, the low price may cause demand to buy the tokens, as the future predictions for the token look promising.

Related Articles

1. Best Crypto Presales
2. Best Altcoins to Buy

AiDoge – New Meme to Earn Crypto

• Earn Crypto For Internet Memes
• First Presale Stage Open Now, CertiK Audited
• Generate Memes with AI Text Prompts
• Staking Rewards, Voting, Creator Benefits