Ethereum has risen in value over the past few months and this has resulted in more investors looking to buy ETH.
The growth of the second largest cryptocurrency has been attributed to the rising popularity of decentralized finance (DeFi) and non-fungible tokens (NFTs).
At press time, Ethereum is trading at $ 2,013 and is up 8.33% in the past 24 hours, according to CoinMarketCap. This article examines Ethereum and whether it is a good time for investors to buy ETH.
Ethereum: birthplace of dApps
Ethereum was created in 2015 by programmer Vitalik Buterin as a blockchain network alongside its native token called Ether (ETH).
Ethereum enables developers to create decentralized applications (dApps) using smart contracts. Smart contracts are highly secure programs that run on the blockchain and automatically force them to perform functions via code.
The recent upgrades in the Ethereum network are also responsible for the rise in Ethereum’s recent prices.
According to the developers, the update should begin with the “London” hard fork, which is to be rolled out in July. These upgrades would make Ethereum greener by reducing energy consumption, according to the Ethereum developers.
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Ether Price Moves: Are The Bulls Back?
Ethereum price was caught in a downtrend that already existed after hitting its all-time high of $ 4,362 on May 12.
The asset fell to $ 3,587 on May 16 and continued to drop to $ 2,460 on May 19. Ethereum held its $ 2,000 range through June 22nd when it fell to $ 1,874.
The Ethereum price has since rebounded somewhat as it has risen and is currently at $ 2,086. Investors looking for a massive project that would bring massive returns must buy ETH before the price goes higher.
However, investors should be aware of the price of Bitcoin when investing in Ethereum. Bitcoin’s slump is known to affect other cryptocurrencies in the markets due to its influence in the world.
Some commentators believe the latest market dump was caused by Tesla’s Elon Musk and his company’s announcement. China’s crackdown on the sector is also seen as a factor.
However, since then, Ethereum has seen strong returns, which is another reason to buy ETH.
Ether technical and fundamental analysis
Ethereum technical data shows a relative strength index (RSI) of 45.01, suggesting it is above the oversold margin and is in a healthy buy region.
This upward trend is reinforced in the Market Cipher B strategy, which shows a “buy” opportunity with its greenish trend line. This indicator also shows that the green circle is moving up, indicating an upward trend.
However, the Wolfpack strategy indicator shows a bearish trend as it is red and below the line. Still, this shouldn’t discourage investors, Ethereum is no stranger to market volatility. So now is the chance to buy ETH and add it to your portfolio.
After the introduction of Bitcoin by El Salvador, cryptocurrencies are now gaining more recognition from countries. The Ethereum blockchain was used by the Bank of Israel for an internal pilot project to analyze the digital shekel.
In terms of investing, Ethereum is also entering the ETF markets. Earlier this month, the investment firm VanEck proposed the first proposal for an Ethereum Exchange Traded Fund (ETF) in the United States.
VanEck, who has already submitted a Bitcoin ETF proposal in the US, although it is advisable to apply for an Ethereum ETF as well. The company’s goal for this ETF is to introduce retail and institutional traders to ETH without investing directly.