The price of Ethereum is floating at $4,300 on Wednesday, up from last week's short dip below $4,000.
President Joe Biden signed a $1.2 trillion infrastructure plan into law this week, which included measures that might have major tax ramifications for certain crypto investors. Ethereum (ETH) reached a new all-time high of $4,865 on November 10th, just before this current price decrease. Recently, the second-largest cryptocurrency has shattered many all-time highs.
Prior to this recent downward trend, Bitcoin (BTC) and Ethereum were both at or around all-time highs, with Bitcoin establishing a new all-time high of almost $68,000 this month. Despite the price reductions in Bitcoin and Ethereum, experts' recommendations for investors remain the same.
What Should Ethereum Traders Do Now?
Experts suggest ignoring the rise and fall as with any long-term investment. The recent high price does not indicate that Ethereum's volatility has subsided.
Jeremy Schnieder, the investing expert behind Personal Finance Club, stated that :
“The fundamental question is whether or not those who possess these coins will continue to see continuous, exponential rise? Nothing in the basics of cryptocurrencies leads me to believe that response is yes,”
Since there is no certainty that the value of any cryptocurrency will rise, experts suggest investing no more than 5% of your investment in cryptocurrency. Never invest if it means you won't be able to accomplish other financial goals, such as paying off high-interest debt or putting money down for retirement.
If you've already achieved all of those goals, the greatest thing you can do is ignore the buzz around new ups and downs.
Ethereum is a decentralized, open-source blockchain with smart contract capabilities. The native cryptocurrency of the platform is Ether. Ether has the second-largest market capitalization among cryptocurrencies, after Bitcoin.
The idea of a blockchain smart contract platform was first introduced by Ethereum. Smart contracts are internet-based computer programs that automatically carry out the steps required to complete a contract between many parties. They were created to eliminate the need for trusted middlemen between contractors, lowering transaction costs while enhancing transaction dependability.
Ethereum's main innovation was creating a platform that allowed it to execute smart contracts on the blockchain, which adds to the benefits of smart contract technology already in place. According to Ethereum co-founder Gavin Wood, the blockchain was created as a kind of “one computer for the entire globe,” capable of making any software more durable, censorship-resistant, and fraud-resistant by executing it on a globally dispersed network of public nodes.