ETH falls below 1800, is it time to start dollar-cost averaging? Full analysis of the dollar-cost averaging strategy

June 4th, ETH dropped to $1734, and many long-term investors began to ask: Can I start dollar-cost averaging now? My answer is: Yes, but with the correct approach.

What is dollar-cost averaging? Regularly investing a fixed amount, regardless of market timing. Suitable for investors who are optimistic about the long-term but do not want to bear the risk of short-term bottom fishing.

Why is now the right time to start dollar-cost averaging? Because ETH has fallen from $2200 to $1734, a decline of over 20%, entering a mid-term relatively undervalued zone. Historically, after ETH drops more than 20%, starting dollar-cost averaging has yielded an average return of +67% over one year.

Specific dollar-cost averaging plan (using a 3-month period as an example): Suppose you plan to invest $3000. Weekly purchases, totaling 12 times, $250 each time. Buy blindly at the same time each week, regardless of price. Adjustment mechanism: If ETH price is below $1600 that week, double the investment to $500; if ETH price is above $1900, pause the investment and wait for a correction.

Advantages of dollar-cost averaging: No need to predict the bottom, avoid emotional trading, and achieve an average cost lower than most one-time bottom fishers. Disadvantages: If the market experiences a V-shaped reversal, returns may be lower than a lump-sum purchase.

Currently, ETH's price is very suitable for initiating a 3-month dollar-cost averaging plan. No need to worry about short-term fluctuations, even enjoy the dips. The only rule of dollar-cost averaging is: stick to it and do not stop halfway out of panic. If you are a short-term trader, dollar-cost averaging is not suitable for you. But if you believe in ETH's long-term value, every sharp decline is an opportunity for dollar-cost averaging.

#ETH drops more than 5%
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