Ethereum -- Buy the Dip?
Ethereum (CRYPTO: ETH), the second-largest cryptocurrency by market cap, is now down by nearly 70% year to date and down more 75% from the all-time high that it set last November. The magnitude and velocity of the decline in the crypto market have been alarming -- during this time, Ethereum tokens have lost an astounding $415 billion in value, a figure about the same as the market cap of ExxonMobil (NYSE: XOM).
The primary drivers of the crypto market sell-off have been the same inflation and interest rate concerns that have roiled the stock market. At the same time, the concerns around Ethereum have been exacerbated by the situation at crypto lender Celsius, which allows investors to deposit Ethereum in exchange for interest payments and then lends out the tokens. On Sunday, Celsius halted all transfers and withdrawals from its platform due to an apparent liquidity crisis, a move that has further spooked crypto traders. There is concern that this could lead to even more selling pressure on Ethereum (and other cryptos) if Celsius is forced to liquidate its holdings.
Ethereum is now trading at prices not seen since early 2021, so investors who felt that they missed the boat last time have another chance to open a position at those levels.
Source Fool.com
