Should You Buy Ethereum While It's Under $2,500?

Today, we will tell you about Ethereum. Should You Buy Ethereum While It’s Under $2,500? Let’s get started:

Key Points

Ethereum’s price is now below $2500 for the very first time in November.
The future of cryptocurrency depends on the broad importance of blockchain and crypto technology, with a particular focus on smart contracts.
Despite recent price decreases, Ethereum holds a leading position in a crucial sector of the cryptocurrency market.

Does the current dip in Ethereum’s price an opportunity to buy? Here’s what you should be aware of.

When I’m writing this Monday night, one Ethereum ( ETH -12.32 per cent) coin is worth $2,482. The most popular smart contract coin has fallen below $2,500forn for the very first time since November. You’d be losing around 15% if you purchased Ethereum in the last year.

You also made a loss if you held onto the Ethereum that you bought at the beginning of April 2021. Contrary to that, Bitcoin (BTC -9.57%) increased 70% over the exact five-year time frame and it was the S&P 500 (^GSPC -1.59%) index of the stock market that grew 43 per cent.

Are the days of Ethereum’s peak already behind it or is it an easy purchase at this historically low cost? Let’s take a look at three questions. If you can say a firm “no” to any of these questions is bad news for Ethereum over the long term.

Table of Contents

Are cryptos going to disappear?

Ethereum’s days are likely to be over blockchain and cryptocurrency are becoming obsolete.

However, the growth investing expert Cathie Wood believes Bitcoin to surpass a million-dollar price within over five years. Institutional investment companies are launching crypto-based exchange-traded funds (ETFs) and committing only a tiny portion of their strategy to wealth-building cryptocurrency assets.

The current White House administration wants to create a crypto-based stockpile like the gold reserves at Fort Knox. In the end, Investors of all sorts are looking more closely at cryptocurrencies nowadays.

Most of them concentrate on Bitcoin’s inflation-proof value conservation. However, there indeed exist Ethereum ETFs, too, led by Blackrock’s financial giant IShares Ethereum Trust (ETHA -3.45 per cent). That is the reason I am going to answer the next question that could change the game.

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Are there any opportunities for smart contracts that resemble Ethereum in the cryptocurrency’s future?

Cryptocurrencies may be a viable option in the development shortly. But what happens if it’s solely about Bitcoin at the end of the day? Does Ethereum play a significant part in the coming period of the cryptocurrency market’s expansion?

Bitcoin is indeed an extremely basic digital asset. It records transactions and was created to ward off inflationary forces for all time. Put your money into the digital asset and see it increase over time. This is the entire idea.

Ethereum is quite different. It was developed with different objectives in mind, focusing on the potential and efficiency of Smart contracts. They are computer software that is executed if certain pre-defined conditions are fulfilled. Through the use of oracles that feed data such as Chainlink ( LINK -13.34 per cent) and a rising number of financial apps that are compatible with Ethereum, Ethereum can do all kinds of bank-like techniques.

This is what drives this Decentralized Finance (DeFi) sector. Without Ethereum’s smart contract, you’ll remain with traditional banking for the rest of your life -that is, with high costs as well as slow transactions and limited time of operation.

But Ethereum isn’t just the name on the table…

Can Ethereum retain its “preferred provider” status?

There are a myriad of “Ethereum killers” out there. Solana (SOL -7.66 per cent as well as Cardano (ADA -12.99 per cent) can shut down transactions and execute smart contract functions significantly faster than Ethereum. Other alternatives have lower transaction costs. Furthermore, the number of alternatives suggests Ethereum may be a fading trend already.

But Ethereum’s developer activity has been increasing over time. Solana’s volume of projects fell in spring, while Cardano’s project volume is declining. Also, Ethereum is still the smart contract platform to outdo, with the technological advantages of top challengers not changing the rules.

In addition, there is a lot of time to catch up. Ethereum began to build an official community for developers years ahead of all the other platforms however the two platforms, Solana as well as Cardano can fully integrate with the top platform. Developers must therefore learn the language of their choice and completely new programming techniques to move to Ethereum projects. The steep learning curves could make it difficult to switch to more advanced alternatives.

There are other Ethereum-compatible systems like Avalanche (AVAX -10.29 per cent) along with Polygon (POL -9.83 93%). However, Polygon is an Ethereum token in the Ethereum blockchain, and Avalanche’s developer community is small. They’re not a real threat to Ethereum’s dominance in the market.

Is Ethereum the best option today? or is it?

Ethereum could be a failure in several ways however I’m not seeing all of the risks happening at the moment. Things may change over time however, don’t forget that Ethereum is also evolving. Ethereum is constantly rolling out major technological improvements each year, with the goal of speedier transactions and lower costs without sacrificing the security of data and usability.

The updates are more quickly than planned, and even. The second layer networks, also known as Arbitrumand Optimism ( OP -11.20 per cent) sped up the main Ethereum network to such an extent that the long-awaited launch of Sharding (splitting the blockchain into multiple systems operating concurrently) was delayed.

Therefore, I anticipate Ethereum to remain the leading provider of smart contract services over a long time. Some alternatives make the market healthier and inspire technological advances to stay ahead of hungry competitors. A strong developer community will eventually propel Ethereum’s price chart to new heights.

I’m not able to guarantee that Ethereum will be a roaring success in 2025 or within the next couple of years, due to the unpredictability of the slowdown that has occurred in recent months. However, $2,500 seems like an excellent starting point for patient investors.

I increased my tiny Ethereum holdings just a few weeks ago for the less appealing price of $2,730 for each coin. The next time I think about it, I’ll take yet another slice of that delicious Ethereum pie, but at a more affordable price. It’s possible to follow my lead or you could argue with me regarding the place of Ethereum in the long-term cryptocurrency market.

Should you put $1,000 into Ethereum today?

Before you purchase shares in Ethereum take a look at these:

The Trading User Platform Stock Advisor analysts have identified what they believe to be their top 10 most desirable stocks that investors can purchase now… as well. Ethereum was not one of the top 10 choices. The 10 stocks that are likely to yield massive returns over the years ahead.

Take note of the time Netflix listed this on 17 Dec. the 17th of December… If you were to invest $1000 at the time we made the recommendation we made, then you’d own $533,931! *

In the meantime, it’s worth mentioning that the Stock Advisor‘s annual average return of 904%, is an outperformance that can be a snare to markets, as compared with 173 percent in the S&P 500. S&P 500.

Conclusion

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