Ethereum hovers around $ 4,000. Here’s what investors should do next
Ethereum’s price hovers around $ 4,000 on Monday afternoon. Before Monday afternoon, it had risen over the weekend after falling below $ 4,000 last Thursday.
The recent price drop follows President Joe Biden’s signing on Monday of a $ 1.2 trillion infrastructure bill, which contained provisions that could have significant tax implications for some crypto investors. Ahead of this latest price drop, Ethereum set a new all-time high when its price surpassed $ 4,865 on November 10. The second largest crypto has now reached several new all-time highs in recent weeks.
Prior to this current downtrend, Bitcoin and Ethereum were both at or near their all-time highs in recent times, with Bitcoin also setting a new all-time high of over $ 68,000 this month.
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Despite the drop in the price of Bitcoin and Ethereum, expert advice to investors remains the same.
What Should Ethereum Investors Do?
As with any long-term investment, experts advise ignoring the ups and downs. The latest high price doesn’t mean Ethereum’s volatility is gone.
“The real question is, will these coins continue to experience compound exponential growth? Nothing in the fundamentals of cryptocurrency tells me the answer is yes, ”says Jeremy Schnieder, the investment expert behind Personal finance club.
Because there is no guarantee that the value of a crypto will increase, experts advise never to invest more than 5% of your portfolio in cryptocurrency. Never invest at the risk of not meeting other financial goals, like paying off high-interest debt or saving for retirement.
If you’ve hit all of these criteria, the best thing you can do is ignore the hype around new highs or lows. As with traditional long-term investments, the best thing you can do is “settle it and forget it,” Humphrey Yang, the personal finance expert behind Humphrey Talks, told NextAdvisor.