As The Price of Ethereum Breaks Through $3K, Should You Buy It In 2022?
2022-03-28 10:08:21
Is Ethereum A Good Investment In 2022?
Recently, there is an upward trend in the cryptocurrency market, with the price of Bitcoin up 2.45%, Ethereum (CRYPTO: ETH) up 2.83%, Tether up 0.01% over the past 24 hours, according to the data from Gate.io. It is worth noting that ETH has had a positive growth in the past week, rising nearly 1.5 times that of BTC, and currently trading for US$3140. Although there is still a long way to go before ETH price surpasses its all-time high of US$4,892. However, many experts are optimistic about the development of ETH in 2022. According to Kain Warwick, founder of derivatives trading system Synthetix, the price of ETH will not only overtake its previous high spot in 2022, it will even go far higher.
Besides, the blockchain will officially switch over from a proof-of-work to a proof-of-stake system in the coming months, which will make it faster, more efficient and economical than what it is now. Indeed, proof-of-work is using tons of computing power to create new coins while the proof-of-stake system will allow crypto owners to use coins as a down payment for mining coins, which will speed up the process of mining and reduce the congestion for getting coins mined. In this way, investors will trade, sell and buy Ethereum faster with lower transaction fees. Also, the blockchain can better compete with its rising rivals, which will be helpful to add value to its digital currency.
Recently, there is an upward trend in the cryptocurrency market, with the price of Bitcoin up 2.45%, Ethereum (CRYPTO: ETH) up 2.83%, Tether up 0.01% over the past 24 hours, according to the data from Gate.io. It is worth noting that ETH has had a positive growth in the past week, rising nearly 1.5 times that of BTC, and currently trading for US$3140. Although there is still a long way to go before ETH price surpasses its all-time high of US$4,892. However, many experts are optimistic about the development of ETH in 2022. According to Kain Warwick, founder of derivatives trading system Synthetix, the price of ETH will not only overtake its previous high spot in 2022, it will even go far higher.
How Will ETH Price Develop In 2022?
In fact, there is a positive attitude towards ETH price. Some experts said that ETH price has managed to climb back to the major support and resistance zone at $3,000 and it will rise further. Currently, the cryptocurrency market continues to forge ahead despite the obstacles on multiple fronts, including global conflict, rising inflation and widespread economic uncertainty, all of which are hurting financial markets and helping to remind people of making a diversified investment portfolio.Besides, the blockchain will officially switch over from a proof-of-work to a proof-of-stake system in the coming months, which will make it faster, more efficient and economical than what it is now. Indeed, proof-of-work is using tons of computing power to create new coins while the proof-of-stake system will allow crypto owners to use coins as a down payment for mining coins, which will speed up the process of mining and reduce the congestion for getting coins mined. In this way, investors will trade, sell and buy Ethereum faster with lower transaction fees. Also, the blockchain can better compete with its rising rivals, which will be helpful to add value to its digital currency.
Should You Invest Much Money In ETH Right Now?
In fact, investors should know there is a certain amount of risk in buying any cryptocurrencies, including Ethereum. Return versus risk exists in all investments. Crypto investors tend to react severely to the hot news, just like geopolitical conflict between Russia and Ukraine, which can make ETH price up and down rather dramatically. In spite of the volatility, there is a huge potential to Ethereum in the coming years as it continues to be a foundational part of DeFi, whose blockchain will keep going faster and more efficiently. According to analysis, with Ethereum price now far below its all-time highs in the past, it could be a proper time to begin a position in this digital currency.
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