Ethereum is finally back on track, hitting $3,000. It went more than $3,100 last Monday, February 1.
Before it spiked last Friday, February 4, Ethereum’s price stayed below $3,000 ever since it dropped below $2,200 last January 24.
Now the question is, what does this mean for new investors that are just getting into it? While Ethereum sellers are rejoicing, what should first-time investors do? The majority of them create fresh scrutiny on their portfolio, considering the market’s movement. They remove their stable coins, such as Tether (USDT) or Bitcoin (BTC), and take a wait-and-watch attitude.
This time could be an opportunity for new investors looking to diversify their crypto portfolio and invest in other cryptos that offer diversification benefits. However, we believe the change we are experiencing is just a side effect of the market’s vulnerability to manipulation.
Why is Ethereum dropping?
The recent drops to Bitcoin and Ethereum were caused by continuous surge inflation. The Fed continued signals saying that the central bank will start implementing measures to stimulate the economy.
Experts that long-term investors need not worry. The surge does not mean that Ethereum’s volatility is on its way to decreasing. Ethereum’s volatile nature will continue for the foreseeable future. Instead, analyze if owning ETH can experience continuous compound and exponential financial growth.
Compound growth is essential for long-term investors. The higher the volatility, the slower the growth, but it will always be there; it is just a question of whether or not to invest.
Since there is no assurance that its value will continue to grow, it is therefore advised that investors should have a portfolio balance of 50% Ether and 50% stable coins. It will give them an exciting chance to take advantage of the volatile nature of Ethereum as well as the stability of other coins.
Another thing new investors must remember first time into crypto trading is that when ETH price starts rising during a bull run, there comes an avalanche of new buyers, which pushes the value to new heights. Hence, if you plan to invest in ETH, now could be the right time. We got some useful ETH trading tricks on sleeves that must be reminded of!
Your Key Takeaway
The Ethereum price is climbing back. Experts suggest that long-term investors have a balanced ETH and stable coins portfolio. Stay tuned for more Crypto News!
