Ethereum jumps – is this the beginning or the end of it?
This year has been such a wild ride for cryptocurrency investors. Since most transactions were online after the pandemic visited the world, digital assets have been experiencing a series of such highs and lows. Ethereum’s price soared above $4,000.
Ethereum’s price surge has been getting boosted by many factors this year. The best one being the European Investment Bank plan to issue its digital bond sale on the Ethereum network. Another was businesses like UBS, Mastercard, and JPMorgan started investing in startups that revolved around Ethereum.
Ethereum is currently valued at $2,500 per coin and so let’s make an example of what your $1,000 investment would be worth some years back so we can slowly study Ethereum’s jumps.
In August 2015, Ethereum’s price was under 67 cents. The $1,000 investment would be worth close to $4 million this year.
June 2017. Ethereum steadily climbed and in the spring of 2017, the coin was worth $343. If you’d invested your $1,000 here, it would be worth $8,000.
Jan 2018. The cryptocurrency was still in the bull market getting to a high of $1,400. If you invested at this peak, your $1,000 would be worth close to $2,000.
April 2018. Keep in mind the volatility the market experiences here because just three months after hitting $1,400 Ethereum plunged to a mere $379. If you invested at this drop, the $1,000 would be valued at $7,000.
Dec 2018. Well, the market did not go so well for Ethereum investors as its value dropped to $83 by the end of the year. But if you bought the dip, the $1,000 would be valued at $33,000.
July 2019. The market recovered the following year to $300. No investor had foreseen the growth for they had lost a little faith in the cryptocurrency. That $1,000 investment would be worth over $20,000.
In Jan 2021, Ethereum’s climb had gotten impressive as the coin was valued at $730 on New Year’s. if you invested $1,000 your money would be worth $3,700.
March 2021. Towards the end of the month, Ethereum was at $1,800. You’d have made a $500 profit if you’d invested your $1,000.
April 2021. Now, this was a lovely month for Ethereum investors for the price kept rising to $2,500.
By early May the cryptocurrency got to the highest it had ever been; $4,196.83. Ethereum’s market cap got to an all-time high of $483.4 Billion.
The same May however is when the major crash in the cryptocurrency world happened. Ethereum was down by 22% and got to $2,600, down from the $4,000 mark. Well, this is not abnormal in the crypto scene because of the volatility we earlier mentioned.
Ethereum co-creator Vitalik Buterin in an interview with CNN Business said that the crash didn’t surprise him as he’d experienced it all before. According to him, the reason the crypto bubbles stop is due to some event happening that points out that the technology is not there yet.
The wild swings being experienced by investors are not for the weak. Newbies and general fans are scaling up the price targets and have faith the price will surge soon. The steady climb of Ethereum has made analysts predict that more gains are to be experienced from the crypto. Vijay Ayyar of Asia Pacific stated that the market is now realizing how much it has been undervaluing Ethereum given all the developments undergoing on the network. According to him, it still lags behind Bitcoin by a lot and has a long way to go.
Ayyar predicts that by early next year, Ethereum will be valued at a price between $5,000 to $10,000. The CEO of Oasis Pro Markets LLC Pat LaVecchia says that Ethereum has got so much volatility like Bitcoin’s, but has the potential to increase in value when more institutional investors get to know of it. Market optimists say that the blockchain will be back to its bullish nature because of the upgrades going on in the network, the NFTs, and smart contracts features.
Investing in cryptocurrency is a risk that you should think about properly before getting into it. Ethereum has a bright future but the volatility it has will never end. The highs and lows are a norm that every investor should’ve gotten used to by now, and those will go on forever.
One cannot say that the current plummet we are experiencing is the last one. The coin can reach up to the $10,000 mark and at the same time plunge to $2,000. That’s why people are advised to only invest what they can lose and not all of their savings. For the newbies, do lots of research before getting into the market and keep in mind the volatility the market has. More so, crypto trading is supposed to eat you up a little so you learn the whole shebang. You can visit the Bitcoin Era platform and trade Ethereum.