Should I Buy Ethereum Now? 2024

Should I buy Ethereum now – is a question that frequently crosses the minds of potential cryptocurrency investors. Ethereum is a big player in the world of digital currencies.

While experts have different views on where Ethereum’s price might go, predicting its price is speculative, with varying opinions on its future value, so you should rely on your risk tolerance and, depending on that, decide whether to invest in Ethereum.

In case you are still considering, this guide looks at Ethereum’s future potential and advises on how to buy it safely. 

As with all cryptocurrencies, Ethereum has its potential, and below you can find various perspectives on it:

Evaluating Ethereum’s Investment Potential in 2023

In evaluating whether Ethereum is still a good investment in 2023, factors such as its first-mover advantage, scalability improvements, and regulatory developments must be considered. 

While Ethereum has a thriving ecosystem, competition and regulatory uncertainties pose risks. Each investor’s risk tolerance will ultimately determine whether to buy Ethereum.

Short-term vs. Long-term Approach

Ethereum’s volatility presents opportunities for both short-term and long-term investors. Experienced traders can exploit price swings, but caution is necessary to avoid losses. 

On the other hand, long-term investors who believe in Ethereum’s potential as the backbone of DeFi and Web3 may opt for a buy-and-hold strategy.

Potential for Growth and Risks

While Ethereum offers significant growth potential, it also carries risks. The price of Ethereum is highly volatile and can experience sharp declines during bearish market sentiment. 

However, Ethereum benefits from strong brand recognition and a thriving community of developers. It hosts over 4,300 decentralized applications (dApps), with new ones emerging regularly.

Perspectives from Crypto Personalities

Several crypto personalities have shared their perspectives on Ethereum’s prospects. Crypto World predicts a breakout based on a daily price chart, while YouTuber Virtual Bacon believes ETH could reach $10,000 by 2025 due to ZK-rollups and “danksharding.”

Coin Bureau Clips and Altcoin Daily have positive outlooks, with predictions of $50,000 in the next few years.

Upgrades 

Upgrades like “the Merge” have generated excitement about Ethereum’s scalability and sustainability. If Ethereum solidifies its position as the go-to platform for smart contracts, particularly in decentralized finance 2.0 (DeFi), the demand for ETH could skyrocket.

In case you have decided to purchase Ethereum, here is a short guide on how to do that:

• Choose a Reputable Exchange: Use well-known platforms like Coinbase, Binance, or Kraken.
• Create an Account: Provide the required information and complete the KYC process.
• Enable Two-Factor Authentication (2FA): Add an extra layer of security.
• Secure Your Wallet: Consider using a hardware wallet for large holdings.
• Verify SSL Connection: Ensure the exchange’s website is encrypted.
• Avoid Phishing Scams: Be cautious of suspicious links and emails.
• Use a Secure Connection: Avoid public Wi-Fi for transactions.
• Purchase Ethereum: Deposit funds and double-check transaction details.
• Stay Informed: Keep up with cryptocurrency news and updates.
• Beware of Scams: Watch out for unsolicited messages or emails.
• Consider Tax Implications: Be aware of tax obligations.

Our Binance and Coinbase comparison might help you choose a reputable exchange.

Looking ahead, Ethereum’s price forecast is subject to speculation and debate. Technological advancements and regulatory changes are expected to impact its value. Considering the recent bearish conditions, predicting a significant rise in ETH’s price before the end of 2023 is difficult. 

However, if ETH can maintain itself above the 50-day Exponential Moving Average on the daily timeframe, there is potential for optimism. A target of $2,000 could be achievable by the end of the year.

As for 2024, predicting the future of Ethereum is speculative, but regulatory changes in the crypto market could play a significant role.

If the SEC adopts a more favorable regulatory framework for cryptocurrencies, institutional investment in Ethereum could increase, driving up its price. In this scenario, a potential target for ETH in 2024 could be $3,600.

Unlike other cryptocurrencies that rely on short-term gains, Ethereum has an inherent utility that extends beyond that. Its utility, particularly in the DeFi sector, is expected to contribute to the sustained value of ETH in the long term. 

If Ethereum’s developers continue to scale up the network’s technology, it could become the preferred blockchain for traditional financial organizations entering the Web3 space.

This could lead to a significant increase in demand for ETH, potentially pushing its value to $5,000 by the end of 2025.

Institutional interest is another factor that influences Ethereum’s long-term prospects. The potential approval of spot ETH ETFs by the SEC indicates a growing interest from major firms like Invesco.

While no spot ETH ETFs have been approved at the time of writing, this development suggests a positive outlook for Ethereum as an investment option.

In March 2016, Ethereum (ETH) started gaining traction and surpassed the $10 milestone. Over the years, it experienced highs and lows, reaching a peak of $1,396 in early 2018. However, like the rest of the crypto market, it then plummeted.

After hitting a low point of around $77 in December 2018, ETH remained in a consolidation phase for almost two years. But in late 2020, it broke out and experienced a bull run, reaching a high of $4,643 in May 2021 and an all-time high of $4,891 in November 2021.

Unfortunately, after reaching its peak, ETH’s value fell dramatically. It faced significant price fluctuations in subsequent years, briefly dropping below $1,000 in June 2022. The token continued to experience volatility in 2023.

Ethereum is seen as a cryptocurrency with potential. Some of the beneficial potential use cases are explained below:

• Decentralized Finance (DeFi)

Ethereum is at the forefront of the decentralized finance (DeFi) movement, offering an alternative to centralized systems. The Ethereum blockchain supports numerous DeFi platforms that enable automated loans, token swapping, yield farming, and more. These protocols have low fees and are accessible to anyone worldwide, regardless of location.

• Tokenization

Tokenization is another avenue for Ethereum’s growth. It involves converting real-world assets into tradable tokens on the Ethereum blockchain. For instance, artists can tokenize their paintings and sell fractions of them to multiple investors. This allows artists to raise funds quickly while making art more accessible to a wider audience. For more information, read our article on asset tokenization.

• Supply Chain Management

Ethereum’s blockchain technology can also benefit supply chain management. By implementing Ethereum, companies can create transparent and immutable records of transactions, reducing inefficiencies and preventing fraud.

• Decentralized Autonomous Organizations (DAOs)

Decentralized autonomous organizations (DAOs) are blockchain-governed organizations that operate collectively towards a shared goal. DAOs are run by smart contracts, and every decision is made through transparent voting by token holders. This can revolutionize how organizations are run, making them more democratic and less prone to corruption.

• Gaming Industry

The gaming industry can leverage Ethereum’s blockchain technology for secure and fast in-game transactions. Additionally, Ethereum allows for creation of non-fungible tokens (NFTs) for digital items. Micro-transactions enable game developers to sell in-game items at low prices without sacrificing profit, leading to a more dynamic gaming experience and increased revenue.

• Digital Identity Management

Ethereum can be used for managing digital identities. Users can store their data on the blockchain, giving them control over who can access it. For example, prospective students can create a blockchain-based identity with their academic credentials and provide it to colleges and universities. This streamlines the verification process and benefits both parties.

The liquidity of ETH in a particular region can be significantly reduced if that country chooses to ban or restrict the use of cryptocurrencies. On the other hand, if a country embraces cryptocurrencies like Ethereum, it can boost liquidity and demand, potentially positioning it as the next explosive cryptocurrency.

Competition from other layer-1 blockchains, such as Solana, could also impact the price of ETH. Solana has demonstrated its ability to handle many transactions per second with lower fees than Ethereum.

If developers are drawn away from Ethereum to these rival chains, it could negatively affect the demand for ETH and subsequently impact its price.

The actions of institutional investors also play a significant role in determining the value of ETH. Suppose a prominent investment firm or publicly traded company starts investing in Ethereum. In that case, it is seen as a vote of confidence in its future, leading to increased demand from retail investors and a potential boost in ETH’s price. 

Conversely, if institutional investors choose to sell their Ethereum holdings, it could signal skepticism about ETH’s prospects and drive the price down.

Remember, all investments carry some risk, and past performance does not indicate future results. It’s crucial to make decisions based on your research and assessment of your financial situation. 

If you decide to invest in Ethereum, consider starting with a small amount and avoid investing more than you can afford to lose.