For almost three months, the entire cryptocurrency industry it has faced several headwinds and has lost tons of value. Even high quality cryptocurrencies like Ethereal (CRYPTO:ETH) they have not been immune, with the price of the coin currently down more than 50% from its all-time high, trading around the US$2,400 range.
As of this morning, the total market capitalization of the cryptocurrency industry stands at roughly $1.5 trillion. That, too, is down nearly 50%, or almost US$1.5 trillion in value from where it was in November 2021. To see even top cryptocurrencies like Bitcoin (CRYPTO: BTC) and the loss of value of Ethereum means that this liquidation is creating an incredible opportunity.
Ethereum is one of the highest potential cryptocurrencies you can buy. However, it has its problems that need to be resolved so that the blockchain network can be expanded in the long term.
So, with the price of Ethereum dropping significantly and showing no signs of recovery yet, does that make it a great buy today, or is it a sign of more pain to come?
Can the price of Ethereum recover from this sell-off?
Before you invest in any cryptocurrency today, there are a few things you need to know. Right now, because the industry is highly volatile, cryptocurrencies are out of favor with investors, especially since volatility heats up.
Cryptocurrencies were already taking a hit from tightening monetary policy in North America. However, now with the current situation in Ukraine and even more uncertainty in the markets, high-risk assets such as cryptocurrencies are naturally some of the biggest losers.
So in the short term, there is certainly a strong chance that these cryptocurrencies like Ethereum will not recover their price. And while it could still lose value, cryptocurrency is already so cheap that it seems like it now has a lot less value to lose.
So for investors who are bullish on crypto and willing to hold onto it for the long haul, buying Ethereum today at 50% off is a great opportunity. But if you buy today, when can you expect Ethereum to start to recover?
When can Ethereum start to recover?
It is not known when exactly Ethereum and the rest of the cryptocurrency industry may recover its price, especially with the increased uncertainty in the markets at the moment.
However, because the industry is currently out of favor, a few major catalysts could be what the entire industry needs to see its popularity start to grow again. And right now, with major upgrades to the Ethereum network in the works, those catalysts could be only a short time away.
These updates, intended to allow the network to be greatly expanded, are what blockchain investors and users have been waiting for years. Some updates were already introduced last year, such as burning Ether after each transaction. However, the biggest updates are coming later this year, so now, when the price of Ethereum is so low, it could be one of the best opportunities to buy.
Ethereum is one of the highest potential cryptocurrencies you can own. Also, with its amazing ecosystem and other blockchains that are compatible with it, even though users have moved away from its mainnet, they are still in the Ethereum ecosystem.
Therefore, when these updates are finally introduced, we could see the popularity of the Ethereum network skyrocket again. So while the price of Ethereum is low, I would certainly look to add it to my portfolio.