As of February 1, the Ethereum exchange rate is 2,600-2,800 dollars, which is 10-12 percent higher than three days earlier. Of great importance in the corresponding rise are two factors – the massive trend of all altcoins, as well as the previous multi-level drawdown. Therefore, short-term players need to sell Ethereum right now due to the high risk of a return to the downtrend and overcoming the next bottom. However, there are many other factors that reduce the popularity of the “silver” altcoin.
Sell ethereum and forget
Last year, the promised full-fledged (!) merger of ETC and ETH did not happen. While Ethereum developers are late, the target audience is looking at other advanced projects. The prospect of the latter allows you to exchange ethereum so as not to be completely disappointed in the cryptocurrency world:
● WhaleStats reports MATIC and LINK purchases by whales that until recently relied on Ethereum (estimated daily purchase rate of MATIC and LINK is $1.1 million);
● Bank of America considers ETH to be an overvalued altcoin, which, as part of the optimization of consumer use, cannot compete with other top altcoin SOL;
● The rate of capitalization of ETH is gradually slowing down compared to tokens that are based on the Proof-Of-Stake protocol.
The possibility of staking could be considered a serious leverage for Ethereum. However, validators who want to buy at least 32 Ethereum tokens, according to the terms of sponsorship, cannot withdraw funds until a certain period. And judging by the quality of execution of ETH 2.0, the period of this “merger” can last a long time. So you have to place orders to exchange ethereum for other altcoins in order to expand the portfolio.
What to do in January – buy ethereum or abstain?
The slowness of the ETH 2.0 network makes the “silver” token more dependent on the general trend of cryptocurrencies. To make it easier to navigate the dynamics of the chart, you need to look closely at BTC. Moreover, institutional investors continue to invest in bitcoin.
On January 9-12, Ethereum completely repeated the behavior of Bitcoin. But this does not mean that it is necessary to urgently place orders to buy ethereum or put it up for exchange:
● Firstly, the average purchase price of BTC by large players is $30,000, which contributes to a further drawdown to the thematic rate;
● Second, a small 10% rise could trigger further multi-level growth (hence, there is a desire to buy an asset in a small amount);
● Third, bitcoin and altcoins may sink deeper for the next medium- or long-term pump to reach significant levels.
In the latter case, the probability of updating the record will be at the end of 2022 or later. If the developers of ETH do not announce progress until spring, then the protracted state may shake the popularity of the token itself. Obviously, January is not the best benchmark for evaluating the ETH market. Therefore, it makes sense to exchange ethereum to a certain extent for those tokens that rise in price from external irritants like Elon Musk’s tweets. Altcoins DOGE and SHIB are a prime example.
After the drawdown of Ethereum to the rate of 2,800-3,200 dollars, the probability of a continuation of the downtrend will accelerate (especially if during this period the rate of bitcoin is still above $32,000). Looking at holders of 1,000 ETH or more, you can safely sell Ethereum in a limited amount to slightly reduce the likelihood of risk.
