- Crypto assets are correcting hard.
- Ethereum (ETH-USD) is falling in kind.
- Investors should accumulate some on downturns.
The global equity markets have had a hard time of late. There are a slew of lingering and serious issues plaguing investor confidence. Lately it has been the central bank assault on economic growth, all in the name of controlling inflation. Crypto has not been immune to these downside pressures. Today we make the argument that this, like all the other corrections before, is an opportunity. Investors should at least contemplate investigating the opportunities at hand in currencies like Ethereum (ETH-USD). After all, its fundamental thesis is easy to argue, since it is the dominant the transaction network.
Ethereum has competition, but for now there is no doubt about the reasons to own it. If crypto traders transact, odds are they will need some ETH to pay for gas and fees. For those who are skeptical about the future of cryptocurrencies, you must remember that all things in this world are going digital, so money will too. And when that happens, current crypto tech will come into play on a much broader scale.
This Is Not the First Ethereum Correction
The returns from investing in Ethereum are beyond doubt. Nevertheless, famous investors trash it publicly, like Warren Buffett and Charlie Munger. If you bought the March 2020 dip, you made 5,300%. Even now, it is still 1,900% above that level. Those who bought the Christmas 2018 crash immediately gained 375%.
Clearly ETH-USD can deliver profits despite what all the skeptics think. So let’s make today’s idea about trading this proven winner, rather than arguing for its long-term viability. I don’t have to love the assets I am trading, but I would not mind profiting from it. Art dealers don’t have to like the pieces they transact. But that doesn’t stop them from trading them.
For discussing levels, I will refer to Bitcoin’s (BTC-USD) prices because it is the most famous. All other leading cryptos, including Ethereum follow it with slight variation in amplitude. The correction for BTC started late last year. Then when it lost $46,000, it unleashed a bearish pattern, which is still ongoing. The target of this should be in the low $20,000 or high $18,000 range.
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