Should You Buy Ethereum While It’s Still Below $3,000?

Last Updated: March 13, 2022By Tags: , , ,

If there’s anything that cryptocurrency investors know by now, it’s that the price of coins can fluctuate dramatically. For example, back in November, Ethereum’s (ETH) price was closing in $5,000, but its value has tumbled over the past few months.

With inflation at a 40-year high and the Federal Reserve poised to raise interest rates beginning this month, some investors have grown concerned about more speculative investments like cryptocurrencies.

But with Ethereum’s price now well below $3,000, some investors are likely wondering if now is a good time to buy this digital token. I think it is, and here are two reasons why.

Ethereum is still as useful as ever

As with most investments, when the value of a stock or cryptocurrency falls, investors should ask themselves why. If the answer to that has more to do with investor sentiment shifting and not because something has fundamentally changed with their investment, then it’s likely still a good time to hold on to the investment (or start a position).

In the case of Ethereum, nothing has changed with the coin or its blockchain that makes it less useful than it was months ago.

Sure, the price has dropped, along with many other cryptocurrencies and growth stocks, as investors processed information about rising inflation and potential interest rate hikes that caused them to look for more stable investments.

If Ethereum’s price eventually rebounds once investors feel comfortable putting their money back into more high-growth investments, buying the digital coin now — at a discounted price — could end up being a wise move.

Ethereum is about to get even better

Ethereum’s blockchain is already the dominant system for many decentralized finance (DeFi) apps. As much as 70% of DeFi apps run on Ethereum’s blockchain.

While that’s impressive, some other blockchains have taken DeFi market share away from Ethereum over the past couple of years. The good news for Ethereum investors is that its blockchain is about to get even better.

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 cheaper than it is now.

That’s because, instead of using tons of computing power to create new coins (as is the case for proof-of-work), the proof-of-stake system will allow crypto owners to use coins as a down payment for mining coins.

This will speed up the mining process, lower the congestion for getting coins mined, and thus make using Ethereum faster with lower transaction fees.

This upgraded version, formerly known as Ethereum 2.0, will likely help the blockchain better compete with its rising rivals and could help add value to its digital currency.

Keep this in mind when buying Ethereum

Investors should know that owning any cryptocurrencies, including Ethereum, comes with a certain amount of risk. Crypto investors tend to react in big ways to the news cycle, which can send prices up and down rather dramatically.


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