As a result of uncertainty and volatility in the crypto market, Ethereum (CRYPTO: ETH) is now down nearly 25% from its February highs, and has been trading near two-month lows. Recently, fears of financial contagion stemming from Silvergate Capital and Silicon Valley Bank have further added to concerns about Ethereum. At its current price of $1,438, Ethereum is still 70% below its all-time high of $4,891.70 in November 2021.
All of which, of course, creates a unique buying opportunity for Ethereum. The recent price decline of 25% certainly qualifies as a buy-the-dip opportunity, and much of the price action surrounding Ethereum seems to be occurring because of events unrelated to it directly. From my perspective, the long-term case for buying Ethereum remains in place.
As a long-term investor, it's important to focus on the events and catalysts that have a direct impact on the long-term growth prospects of a crypto, rather than getting caught up in the day-to-day or week-to-week events that get all the publicity in the media. For now, of course, everyone is talking about the risks of financial contagion, and all the top cryptos are feeling the heat. After news broke about Silvergate Capital and Silicon Valley Bank, both Bitcoin and Ethereum traded down 8%.
Source Fool.com