The entire crypto market is in a downturn today. According to CoinMarketCap, the market capitalization of all digital currencies worldwide has decreased by around 15% in the past 24 hours. Thus, the most valuable cryptos are in good company. Bitcoin lost around 13.5% of its value, at ETH it is now even more than 15% that the second most valuable crypto currency is losing value. As a result, ETH also slipped into the red on a weekly basis and was now around 6% lower than it was seven days ago. The reason: a new crash in the crypto market. Should you invest in ETH now or should you wait a little longer?
Crypto market on the downswing
There were no fundamental causes for the Ethereum crash. Rather, the entire sentiment in the crypto market changed yesterday, Tuesday. The Bitcoin introduction in El Salvador was more than bumpy. Investors saw more problems with cryptocurrencies again. Can these meet the demands in the long term and revolutionize the world of finance and payments?
After a positive price trend in the last few weeks, a correction in the crypto currencies was expected for a long time. Now the time had come. A small trigger was enough to set a massive sale in motion. Nonetheless, most cryptocurrencies are still clearly in positive territory over the last few weeks. Last month, the value of ETH rose by 10%. Over the year, there is an increase of over 850%.
Transaction prices are rising again at ETH
Due to the triumphant advance of ETH in the last few weeks, transaction prices rose again. Because the excellent return for investors also has a flip side of the coin. After all, the so-called gas fees on the Ethereum blockchain are based on supply and demand. The computing power of the miners cannot keep up with the outstanding price development. This means that layer 1 transactions are becoming more and more expensive. With the integration of a Layer 2 technology, this problem was alleviated. In the meantime, more transactions per day take place on Layer 2 of Ethereum than with Bitcoin. Still, Ethereum has to be scaled further. But the head behind the blockchain Vitalik Buterin is in good spirits to make Ethereum better, faster, cheaper and, above all, more efficient.
Ethereum Upgrade 2.0 at a glance
In the future, the Ethereum 2.0 upgrade should improve the blockchain. The developers keep an eye on the current problems. The biggest advancement at Ethereum is to provide solutions to make the smart contract platform the method of choice. Well-known competitors are active with Cardano or Solana. With the Alonzo update at Cardano, some smart contract projects could turn their backs on Ethereum and settle on Cardano’s blockchain.
Should you buy ETH now?
With the recent sale of ETH, the 4,000 US dollar mark and thus also the record high have moved back into the distance for the time being. Nevertheless, it is still well above the $ 3,000 mark. The course continues to run above the moving averages GD 50 and GD 200. In particular, GD 50 should be an important support in connection with the US $ 3,000 mark. A consolidating price movement could initially follow. Because investors bought ETH in the past 24 hours at a price level of around 3250 to 3350 euros. In the medium term, yesterday should not have changed the positive sentiment for Ethereum. ETH remains the basic investment for all crypto fans and investors who want to participate in a successful future of digital currencies and blockchain projects.
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